Sacramento City Council
February 25, 2025

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00466 2/25/2025 Consent Item 5.

On-Call General Contractor Services List
File ID: 2025-00466
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute four On-Call General Contractor Service Agreements in not-to-exceed amounts of $750,000 per contract as identified in Attachments 2-5.

Contact: Dustin Hollingsworth, Assistant Director, (916) 808-5538, [email protected]; Mack Smith, Engineering Manager, (916) 808-5445, [email protected]; Gale O’Neill, Contract & Compliance Specialist, (916) 808-7154, [email protected]; Department of Convention and Cultural Services Presenter: None
Attachments:
1-Description/Analysis
2-Contract No. PRC003366 Scott Hanchen dba Alpha Renovation 3-Contract No. PRC003373 John F. Otto, Inc. dba Otto Construction 4-Contract No. PRC003372 TDP Construction Services, Inc. 5-Contract No. PRC003371 California United Mechanical Inc., dba United Mechanical Inc.

Description/Analysis
Issue Detail: On-call contracts are typically established to supplement staff during peak workloads, provide specialized services, support essential facilities, and deliver projects more cost-effectively and efficiently.

Public Works requested that a new On-Call General Contractor Services List be established and it was approved by City Council on June 11, 2024 (Motion No. 2024-0155), to maintain this “best practice” for efficient and cost-effective project delivery. The Convention & Cultural Services Department would like to enter into four agreements with Contractors on this list.

The new On-Call General Services List anticipates the work needed over the next five years.

Entering into these four On-Call General Contracting contracts will enable staff to expedite and

File ID: 2025-00466 2/25/2025 Consent Item 5.
complete projects more quickly and efficiently.

Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Section 3.56, which requires City Council approval for contracts of $250,000 or more.

Economic Impacts: None.

Environmental Considerations:

California Environmental Quality Act (CEQA): The action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301.

The action involves the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The exemption covers interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances; existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety);restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety, unless it is determined that the damage was substantial and resulted from an environmental hazard such as earthquake, landslide, or flood.

Sustainability: Not applicable.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: On-call contracts are designed to ensure timely services during periods of peak workload, when specialized expertise is needed, or when essential facility operations are disrupted.

On June 11, 2024, the City Council approved the creation of an On-Call General Contracting Services List for Public Facilities. The Facilities Maintenance Division allowed other City departments to piggy-back onto their solicitation provided each department got their own approvals. The Convention & Cultural Services Department seeks on-call general contracting service agreements with four firms listed in attachments 2-5. These contracts will supplement staff during peak demand, provide specialized services, support essential facility operations, and enhance cost-effectiveness and efficiency.

Financial Considerations: Each of these contracts will have a not-to-exceed amount of $750,000 over a five-year period, as identified in Attachments 2-5. Purchase orders encumbering funds under these agreements will only be issued once specific projects are identified and funding is secured.

File ID: 2025-00466 2/25/2025 Consent Item 5.

Funding for each project will be determined when the project is initiated, and the purchase order is authorized. Potential funding sources may include local or state funds, or department operating budgets. While contractors may receive multiple assignments each year, the total value of all assignments will not exceed the contract limit specified in Attachments 2-5.

Sufficient funding is available to make purchases through June 30, 2025. Purchases in future fiscal years are dependent upon availability of funding in the adopted budgets of the applicable fiscal years.

Local Business Enterprise (LBE): The minimum LBE requirements is waived as the City has suspended competitive bidding and utilized and alternate procurement method to select vendors.

Form approved by City Attorney 2_6_2024 1

AGREEMENT
( Construction Contract Over $25,000)
THIS AGREEMENT, dated for identification January , 202 , is made and entered into between the CITY OF SACRAMENTO, a municipal corporation (“City”), and Alpha Renovation, LLC., 2334 Hooke Way, Sacramento, CA 95822 (“Contractor”) in an amount of Seven Hundred Fifty Thousand Dollars and Zero Cents ($750,000.00).

The City and Contractor hereby mutually agree as follows:

1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the “Contract,” consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:

Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Subcontractor and Local Business Enterprise Participation Form Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers’ Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
This Agreement
Standard Specifications
Special Provisions
Plans and Technical Specifications
The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the “Standard Specifications” shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento approved by the Sacramento City Council on November 10, 2020 (Resolution No. 2020-0354), and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.

Attachment 2 to staff report number 2025-00466
Form approved by City Attorney 2_6_2024 2
DEFINITIONSUnless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement.AGREEMENT CONTROLSIn the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement.SCOPE OF CONTRACTContractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material andtransportation necessary to perform and complete in a good and workmanlike manner to thesatisfaction of City, all the Work called for in the Contract Documents entitled:On-Call General ContractorContractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.CONTRACT AMOUNT AND PAYMENTSCity agrees to pay and Contractor agrees to accept, as complete payment for the above Work,in accordance with the schedule and procedures set forth in the Contract Documents and subject to deductions, withholdings and additions as specified in the Contract Documents, a total sum that shall not exceed the total bid amount set forth in Contractor’s Proposal Form. In addition, subject to deductions, withholdings and additions as specified in the Contract Documents, payment for individual items of the Work shall be computed as follows:For items of the Work for which a lump sum price is specified in Contractor’s ProposalForm, Contractor shall be paid the lump sum price(s) specified in Contractor’sProposal Form; andFor items of the Work for which a unit price is specified in Contractor’s Proposal Form,Contractor shall be paid the sum computed at such unit price, or computed at adifferent price if such different price is determined by City in accordance with the Standard Specifications, based on the actual amount of each such item performed and/or furnished and incorporated in the Work; provided that in no event shall the Form approved by City Attorney 2_6_2024 3
total sum for a unit price item exceed the total bid amount set forth for such item in the Contractor’s Proposal Form, unless authorized by Change Order. 6. PROGRESS PAYMENTSSubject to the terms and conditions of the Contract, City shall cause payments to be madeupon demand of Contractor as follows:A. On or about the first of the month, the Engineer shall present to the Contractor astatement showing the amount of labor and materials incorporated in the Workthrough the twentieth (20) calendar day of the preceding month. After bothContractor and Engineer approve the statement in writing, and the City’s laborcompliance officer provides written approval, the City shall issue a certificate forninety-five (95) percent of the amount it shall find to be due, subject to anydeductions or withholdings authorized or required under the Contract or anyapplicable Laws or Regulations.B. No inaccuracy or error in said monthly estimates shall operate to release Contractorfrom damages arising from such Work or from enforcement of each and everyprovision of the Contract Documents, and City shall have the right subsequently tocorrect any error made in any estimate for payment.C. Contractor shall not be paid for any defective or improper Work.D. The remaining five (5) percent of the value of the Work performed under theContract, if unencumbered and subject to any deductions or withholdingsauthorized or required under the Contract or any applicable Laws or Regulations,shall be released not later than sixty (60) days after completion and finalacceptance of the Work by City. Acceptance by Contractor of the final paymentshall constitute a waiver of all claims against the City arising under the ContractDocuments, except for disputed claims in stated amounts that the Contractorspecifically reserves in writing, but only to the extent that the Contractor hascomplied with all procedures and requirements applicable to the presentation andprocessing of such claim(s) under the Contract Documents. Contractor shall beentitled to substitute securities for retention or to direct that payments ofretention be made into escrow, as provided in Public Contract Code Section22300, upon execution of the City’s Escrow Agreement for Security Deposits inLieu of Retention.E. The parties agree that, for purposes of the timely progress payment requirementsspecified in Public Contract Code Section 20104.50, the date that the City receives astatement jointly approved by the Contractor and the Engineer as provided aboveshall be deemed to constitute the date that City receives an undisputed and properlysubmitted payment request from the Contractor. Progress payments not made within30 days after this date may be subject to payment of interest as provided in PublicContract Code Section 20104.50.

Form approved by City Attorney 2_6_2024 4
F. This Contract is subject to compliance monitoring and enforcement by the CaliforniaDepartment of Industrial Relations, as specified in California Labor Code section1771.4.7. RETENTION OF SUMS CHARGED AGAINST CONTRACTORWhen, under the provisions of this Contract or any applicable Laws or Regulations, City isauthorized or required to withhold, deduct or charge any sum of money against Contractor,City may deduct and retain the amount of such charge from the amount of the nextsucceeding progress estimate(s), or from any other moneys due or that may become dueContractor from City. If, on completion or termination of the Contract, sums due Contractorare insufficient to pay City's charges, City shall have the right to recover the balance fromContractor or its Sureties.8. COMMENCEMENT AND PROSECUTION OF WORKContractor shall commence the Work not later than fifteen (15) working days after the dateof the written Notice to Proceed from City to Contractor and shall diligently prosecute theWork to final completion. The phase “commence the Work” means to engage in a continuousprogram on-site including, but not limited to, site clearance, grading, dredging, land fillingand the fabrications, erection, or installation of the Work. The Notice to Proceed shall beissued within fifteen (15) calendar days following execution of the Agreement by the City andthe filing by Contractor of the required Bonds and proof of insurance, provided that theEngineer may delay issuance of the Notice to Proceed if the Engineer determines in theEngineer’s sole discretion that conditions on the site of the Work are unsuitable forcommencement of the Work. After the Notice to Proceed is issued, the continuousprosecution of Work by Contractor shall be subject only to Excusable Delays as defined in thisAgreement.9. TIME OF COMPLETIONThe entire Work shall be brought to completion in the manner provided for in the ContractDocuments on or before NINETY (90) CALENDARdays from the date of the Notice to Proceed(hereinafter called the “Completion Date”) unless extensions of time are granted inaccordance with the Contract Documents.Failure to complete the entire Work by the Completion Date and in the manner provided forin the Contract Documents shall subject Contractor to liquidated damages as provided in thisAgreement. Time is and shall be of the essence in the performance of the Contract and theWork.10. PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORKThe payment of any progress payment, or the acceptance thereof by Contractor, shall notconstitute acceptance of the Work or any portion thereof and shall in no way reduce theliability of Contractor to replace unsatisfactory work or material, whether or not the Form approved by City Attorney 2_6_2024 5
unsatisfactory character of such work or material was apparent or detected at the time such payment was made. 11. ACCEPTANCE NOT RELEASEContractor shall correct immediately any defective or imperfect work or materials that maybe discovered before final acceptance of the entire Work, whether or not such defect orimperfection was previously noticed or identified by the City. The inspection of the Work, orany part thereof, shall not relieve Contractor of any of its obligations to perform satisfactorywork as herein specified.Failure or neglect on the part of City or any of its officers, employees or authorized agents todiscover, identify, condemn or reject defective or imperfect work or materials shall not beconstrued to imply an acceptance of such work or materials, if such defect or imperfectionbecomes evident at any time prior to final acceptance of the entire Work, nor shall suchfailure or neglect be construed as barring City from enforcing Contractor’s warranty(ies) orotherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subjectonly to any statutes of limitation that may apply to any such claim.12. CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PARTThe City shall have the right at any time to enter upon the Work and perform work notcovered by this Contract, or to occupy and use a portion of the Work, prior to the date of thefinal acceptance of the Work as a whole, without in any way relieving Contractor of anyobligations under this Contract.13. NO WAIVER OF REMEDIESNeither the inspection by City, its officers, employees or agents, nor any certificate or otherapproval for the payment of money, nor any payment for, nor acceptance of the whole orany part of the Work by City, nor any extensions of time, nor any position taken by City, itsofficers, employees or its agents shall operate as a waiver of any provision of the ContractDocuments nor of any power herein reserved to City or any right to damages hereinprovided, nor shall any waiver of any breach of this Agreement be held to be a waiver of anyother or subsequent breach. All remedies provided in the Contract Documents shall be takenand construed as cumulative; in addition to each and every other remedy herein provided,the City shall have any and all equitable and legal remedies that it would in any case have.14. WARRANTYExcept as otherwise expressly provided in the Contract Documents, and excepting only itemsof routine maintenance, ordinary wear and tear and unusual abuse or neglect by City,Contractor warrants and guarantees all Work executed and all supplies, materials and devicesof whatsoever nature incorporated in or attached to the Work, or otherwise provided as apart of the Work pursuant to the Contract, to be absolutely free of all defects of workmanshipand materials for a period of one year after final acceptance of the entire Work by the City.

Form approved by City Attorney 2_6_2024 6
Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City. In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City. In addition to the above, the Contractor shall make a written assignment of all manufacturer’s and other product warranties to the City, prior to completion and final acceptance of the Work by City.The Contractor’s Performance Bond shall secure the performance of the Contractor’s obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.15. LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIMEA. The actual fact of the occurrence of damages and the actual amount of the damagesthat City would suffer if the entire Work, and/or any specified portion thereof, werenot completed within the time(s) specified herein are dependent upon manycircumstances and conditions that could prevail in various combinations, and for thisreason, it is impracticable and extremely difficult to fix the actual damages. Damagesthat City would suffer in the event of such delay include: loss of the use of the project;expenses of prolonged assignment to the project of an architectural and/orengineering staff; prolonged costs of administration, inspection, and supervision;increased operational expenses and/or impaired operation of other facilitiesdependent upon completion of the project; and the loss and inconvenience sufferedby the public within the City of Sacramento by reason of the delay in the completionof the project or portion thereof. Accordingly, the parties agree, and by execution ofthis Agreement, Contractor acknowledges that it understands and agrees, that theamount(s) set forth herein as liquidated damages reflect the parties’ best efforts atthe time of entering into the Contract to estimate the damages that may be incurredby City and the public due to the Contractor’s delay in completion of the Work and/orany specified portion thereof, and shall be presumed to be the amount of damagessustained by the failure of Contractor to complete the entire Work and/or anyspecified portion thereof within the time(s) specified herein.

Form approved by City Attorney 2_6_2024 7
B. Contractor shall pay liquidated damages to City for failure to complete the entire Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $2,000.00 for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which the entire Work is completed. Such amount is the actual cash value agreed upon by the City and Contractor as the loss to City and the public resulting from Contractor's default. The parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the foregoing provisions provide for the imposition of liquidated damages from the Completion Date (as extended in accordance with the Contract Documents, if applicable) until the date of completion of the entire Work as determined by the Engineer in accordance with Section 8-4 of the Standard Specifications, whether or not the Work or any portion thereof is claimed or determined to be substantially complete prior to such date of completion. C. In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments that otherwise would be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise under any provision of the Contract Documents or any applicable Law or Regulation. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as specified above shall in any manner be construed to constitute a release of any such liabilities nor a waiver of the City’s right to withhold payment for such liabilities. 16. INDEMNITY AND HOLD HARMLESS A. Contractor shall defend, hold harmless and indemnify the City, its officers, employees, and agents, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the Work, including, but not limited to, any fees and/or costs reasonably incurred by City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform the Work by the Contractor, any subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not Form approved by City Attorney 2_6_2024 8
(i) such Liabilities are caused in part by a party indemnified hereunder, or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense to the extent arising from (i) the sole negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, or (ii) the active negligence of City.B. The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City’s rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract. 17. CONTRACTOR SHALL ASSUME RISKS Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City,shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work. 18. GENERAL LIABILITY OF CONTRACTOR Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation.19. INSURANCE During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19. Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor’s insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract.

Form approved by City Attorney 2_6_2024 9
A. Minimum Scope & Limits of Insurance Coverage(1) Commercial General Liability Insurance providing coverage at least asbroad as ISO CGL Form 00 01 on an occurrence basis for bodily injury,including death, of one or more persons, property damage, and personalinjury, arising out of activities performed by or on behalf of Contractor andits subcontractors, products and completed operations of Contractor andits subcontractors, and premises owned, leased, or used by Contractor andits subcontractors, with limits of not less than one million dollars($1,000,000) per occurrence. The policy shall provide contractual liabilityand products and completed operations coverage for the term of thepolicy.(2) Automobile Liability Insurance providing coverage at least as broad as ISOForm CA 00 01 for bodily injury, including death, of one or more persons,property damage, and personal injury, with limits of not less than onemillion dollars ($1,000,000) per accident. The policy shall provide coverage for owned, non-owned, and/or hired autos as appropriate to theoperations of the Contractor.No automobile liability insurance shall be required if Contractor completesthe following certification:“I certify that a motor vehicle will not be used in the performance of any work or services under this agreement.” ________(Contractor initials)(3) Excess Insurance: The minimum limits of insurance required above may besatisfied by a combination of primary and umbrella or excess insurancecoverage; provided that any umbrella or excess insurance shall contain, orbe endorsed to contain, a provision that it shall apply on a primary basisfor the benefit of the CITY, and any insurance or self-insurance maintainedby CITY, its officials, employees, or volunteers shall be in excess of suchumbrella or excess coverage and shall not contribute with it.(4) Workers’ Compensation Insurance with statutory limits, and Employers’Liability Insurance with limits of not less than one million dollars($1,000,000). The Workers’ Compensation policy shall include a waiver ofsubrogation in favor of the City.No Workers’ Compensation insurance shall be required if Contractorcompletes the following certification:

Form approved by City Attorney 2_6_2024 10
“I certify that my business has no employees, and that I do not employ anyone. I am exempt from the legal requirements to provide Workers' Compensation insurance.” _________(Contractor initials)B. Additional Insured Coverage(1) Commercial General Liability Insurance: The City, its officials, employees,and volunteers shall be covered by policy terms or endorsement asadditional insureds as respects general liability arising out of: activitiesperformed by or on behalf of Contractor and its subcontractors; productsand completed operations of Contractor and its subcontractors; andpremises owned, leased, or used by Contractor and its subcontractors.(2) Automobile Liability Insurance: The City, its officials, employees, andvolunteers shall be covered by policy terms or endorsement as additionalinsureds as respects auto liability.C. Other Insurance ProvisionsThe policies are to contain, or be endorsed to contain, the following provisions:(1) Contractor’s insurance coverage, including excess insurance, shall beprimary insurance as respects City, its officials, employees, and volunteers.Any insurance or self-insurance maintained by City, its officials, employees,or volunteers shall be in excess of Contractor’s insurance and shall notcontribute with it.(2) Any failure to comply with reporting provisions of the policies shall notaffect coverage provided to City, its officials, employees, or volunteers.(3) Coverage shall state that Contractor’s insurance shall apply separately toeach insured against whom claim is made or suit is brought, except withrespect to the limits of the insurer’s liability.(4) City will be provided with thirty (30) days written notice of cancellation ormaterial change in the policy language or terms.D. Acceptability of InsuranceInsurance shall be placed with insurers with a Bests’ rating of not less than A:VI.Self-insured retentions, policy terms or other variations that do not comply withthe requirements of this Section 3 must be declared to and approved by the Cityin writing prior to execution of this Contract.

Form approved by City Attorney 2_6_2024 11
E. Verification of Coverage (1) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. Copies of policies shall be delivered to the City on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier.(2) For all insurance policy renewals during the term of this Contract, Contractor shall send insurance certificates reflecting the policy renewals directly to: City of Sacramento c/o EXIGIS LLC P.O. Box 947 Murrieta, CA 92564 Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to: [email protected](3) The City may withdraw its offer of contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided prior to execution of this Contract. The City may withhold payments to Contractor or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein. F. SubcontractorsContractor shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above.20. FAILURE TO MAINTAIN BONDS OR INSURANCEIf, at any time during the performance of this Contract, Contractor fails to maintain any item of the bonds and/or insurance required under the Contract in full force and effect, Contractor shall immediately suspend all work under the Contract and notify City in writing of such failure. After such notice is provided, or if City discovers such failure and notifies Contractor, the City thereafter may withhold all Contract payments due or that become due until notice is received by City that such bonds and/or insurance have been restored in full force and effect and that the premiums therefor have been paid for a period satisfactory to the Division of Risk Management. Contractor shall not resume work until notified by City to do so, and the City shall have no responsibility or liability for any costs incurred by Contractor as a result of such suspension of Work.

Form approved by City Attorney 2_6_2024 12
In addition to the foregoing, any failure to maintain any item of the required bonds and/or insurance at any time during the performance of this Contract will be sufficient cause for termination of the Contract by City. The Contractor shall be solely responsible for, and shall defend, indemnify and hold harmless the City, its officers, employees and agents against and from, any and all damages, claims, losses, actions, costs or other expenses of any kind incurred by any party as a direct or indirect result of any suspension of Work or termination of the Contract under the provisions of this Section.21. EXCUSABLE DELAYSFor the purpose of these Contract Documents, the term "Excusable Delay" shall mean, and islimited to, delay caused directly by: acts of God; acts of a public enemy; fires; inclementweather as determined by the Engineer; riots; insurrections; epidemics; quarantinerestrictions; strikes; lockouts; sitdowns; acts of a governmental agency; priorities or privilegesestablished for the manufacture, assemble, or allotment of materials necessary in the Workby order, decree or otherwise of the United States or by any department, bureau,commission, committee, agent, or administrator of any legally constituted public authority;changes in the Work ordered by City insofar as they necessarily require additional time inwhich to complete the Work; the prevention of Contractor from commencing or prosecutingthe Work because of the acts of others, excepting Contractor's subcontractors or suppliers;or the prevention of Contractor from commencing or prosecuting the Work because of aCitywide failure of public utility service.The term "Excusable Delay" shall specifically not include: (i) any delay that could have beenavoided by the exercise of care, prudence, foresight and diligence on the part of Contractor;(ii) any delay in the prosecution of any part of the Work that does not constitute a ControllingOperation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting fromtime required by City for review of any Contractor submittals and for the making of surveys,measurements and inspection; and, (iv) any delay arising from an interruption in theprosecution of the Work on account of reasonable interference by other Contractorsemployed by City that does not necessarily prevent the completion of the entire Work withinthe time specified. Excusable Delays, if any, shall operate only to extend the Completion Date(not in excess of the period of such delay as determined by City) and shall not under anycircumstances increase the amount City is required to pay Contractor except as otherwiseprovided in these Contract Documents.22. CONTRACTOR TO SERVE NOTICE OF DELAYSWhenever Contractor foresees any delay in the prosecution of the Work, and in any event assoon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrenceof any delay that Contractor regards as or may later claim to be an Excusable Delay, theContractor shall notify the Engineer in writing of such delay and its cause, in order that theEngineer: (i) may take immediate steps to prevent if possible the occurrence or continuanceof the delay; or (ii) if this cannot be done, may determine whether the delay is to beconsidered excusable, how long it continues, and to what extent the prosecution and Form approved by City Attorney 2_6_2024 13
completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon. After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that any and all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice. 23. EXTENSION OF TIMEIf the Contractor complies with Section 22, above, and the Engineer finds a delay claimed bythe Contractor to be an Excusable Delay, the Contractor shall be allowed an extension of timeto complete the Work that is proportional to the period of Excusable Delay determined bythe Engineer, subject to the approval by City of a change order granting such time extension.During a duly authorized extension for an Excusable Delay, City shall not charge liquidateddamages against the Contractor for such delay.If the City extends the time to complete the Work as provided herein, such extension shall inno way release any warranty or guarantee given by Contractor pursuant to the provisions ofthe Contract Documents, nor shall such extension of time relieve or release the sureties ofthe Bonds provided pursuant to the Contract Documents. By executing such Bonds, theSureties shall be deemed to have expressly agreed to any such extension of time. Thegranting of any extension of time as provided herein shall in no way operate as a waiver onthe part of City of its rights under this Contract, excepting only extension of the CompletionDate for such period of Excusable Delay as may be determined by the Engineer and approvedby a duly authorized change order.24. NO PAYMENT FOR DELAYSNo damages or compensation of any kind shall be paid to Contractor or any subcontractorbecause of delays in the progress of the Work whether or not such delays qualify forextension of time under this Agreement; except that this provision shall not preclude therecovery of damages for a delay caused by the City that is unreasonable under thecircumstances and that is not within the contemplation of the parties, provided that theContractor timely submits all such written notice(s) and fully complies with such otherprocedures as may be specified in the Contract Documents or any Laws or Regulations forContractor to claim damages for such delay.25. CHANGES IN THE WORKChanges in the Work authorized or directed in accordance with the Contract Documents andextensions of time of completion made necessary by reason thereof shall not in any wayrelease any warranty or guarantee given by Contractor pursuant to the provisions of the Form approved by City Attorney 2_6_2024 14
Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof. 26. TERMINATION AFTER COMPLETION DATEIn addition to any other rights City may have, if any services or work required under theContract (including but not limited to punch list items) are not completed as of theCompletion Date (as adjusted by any extensions of time for Excusable Delays grantedpursuant to the Contract Documents), City may terminate the Contract at any time after theCompletion Date (as adjusted by any extensions of time for Excusable Delays grantedpursuant to the Contract Documents), by providing a written notice to Contractor specifyingthe date of termination. Such notice also may specify conditions or requirements thatContractor must meet to avoid termination of the Contract on such date. If Contractor failsto fulfill all such conditions and requirements by such termination date, or, if no suchconditions or requirements are specified, Contractor shall cease rendering services andperforming work on such termination date, and shall not be entitled to receive anycompensation for services rendered or work performed after such termination date. In theevent of such termination, Contractor shall remain liable to City for liquidated damagesincurred for any period of time prior to the termination date.In addition to any other charges, withholdings or deductions authorized under the Contractor any Laws or Regulations, if City terminates the Contract pursuant to this section, City maywithhold and deduct from any payment and/or retention funds otherwise due Contractor anysum necessary to pay the City's cost of completing or correcting, or contracting for thecompletion or correction of, any services or work under the Contract that are not completedto the satisfaction of the City or that otherwise are deficient or require correction as of suchtermination date, including but not limited to incomplete punch list items. Such costs shallinclude all of the City’s direct and indirect costs incurred to complete or correct such servicesor work, including the City’s administrative and overhead costs. If the amount of payment(s)and/or retention funds otherwise due the Contractor are insufficient to pay such costs, Cityshall have the right to recover the balance of such costs from the Contractor and/or itsSurety(ies).27. TERMINATION FOR CONVENIENCEUpon written notice to the Contractor, the City may at any time, without cause and withoutprejudice to any other right or remedy of the City, elect to terminate the Contract for theconvenience of City. In such case, the Contractor shall be paid (without duplication of anyitems, and after deduction and/or withholding of any amounts authorized to be deducted orwithheld by the Contract Documents or any Laws or Regulations):A. For Work executed in accordance with the Contract Documents prior to the effectivedate of termination and determined to be acceptable by the Engineer, including fairand reasonable sums for overhead and profit on such Work; Form approved by City Attorney 2_6_2024 15
B. For reasonable claims, costs, losses, and damages incurred in settlement ofterminated contracts with subcontractors, suppliers, and others; andC. For reasonable expenses directly attributable to termination.Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor’s warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section. 28. TERMINATION FOR BREACH OF CONTRACTIf Contractor abandons the Work under this Contract, or if the Contract or any portion of theContract is sublet or assigned without the consent of the City, or if the Engineer determinesin the Engineer’s sole discretion that the conditions of the Contract in respect to the rate ofprogress of the Work are not being fulfilled or any part thereof is unnecessarily delayed, or ifContractor violates or breaches, or fails to execute in good faith, any of the terms orconditions of the Contract, or if Contractor refuses or fails to supply enough properly skilledlabor or materials or refuses or fails to make prompt payment to subcontractors for materialor labor, or if Contractor disregards any Laws or Regulations or proper instruction or ordersof the Engineer, then, notwithstanding any provision to the contrary herein, the City may giveContractor and its Sureties written notification to immediately correct the situation or theContract shall be terminated.In the event that such notice is given, and, in the event such situation is not corrected, orarrangements for correction satisfactory to the City are not made, within ten (10) calendardays from the date of such notice or within such other period of time as may be specified bythe City in the notice, the Contract shall upon the expiration of said period cease andterminate. In the event of any such termination, City may take over the Work and prosecutethe Work to completion, or otherwise, and the Contractor and its Sureties shall be liable toCity for any cost occasioned City thereby, as hereinafter set forth.In the event City completes the Work, or causes the Work to be completed, no payment ofany kind shall be made to Contractor until the Work is complete. The cost of completing theWork, including but not limited to, extra costs of project administration and managementincurred by City, both direct or indirect, shall be deducted from any sum then due, or thatbecomes due, to Contractor from City. If sums due to Contractor from City are less than thecost of completing the Work, Contractor and its Sureties shall pay City a sum equal to thisdifference on demand. In the event City completes the Work, and there is a sum remainingdue to Contractor after City deducts the costs of completing the Work, then City shall paysuch sum to Contractor. The Contractor and Contractor’s Sureties shall be jointly andseverally liable for all obligations imposed on Contractor hereunder.

Form approved by City Attorney 2_6_2024 16
No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City’s right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuant to Sections 26and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity. 29. CONTRACTOR BANKRUPT If Contractor should commence any bankruptcy proceeding, or if Contractor is adjudged a bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if a receiver is appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice as provided in Section 28 above. 30. SURETIES’ OBLIGATIONS UPON TERMINATION If the City terminates the Contract pursuant to Section 28 or Section 29 above: A. The Surety under Contractor’s performance bond shall be fully responsible for all of the Contractor’s remaining obligations of performance under the Contract as if the Surety were a party to the Contract, including without limitation Contractor’s obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond. B. The Surety under Contractor’s payment bond shall be fully responsible for the performance of all of the Contractor’s remaining payment obligations for work, services, equipment or materials performed or provided in connection with the Work or any portion thereof, up to the full amount of the payment bond. 31. ACCOUNTING RECORDS OF CONTRACTOR During performance of the Contract and for a period of three (3) years after completing the entire Work, Contractor shall maintain all accounting and financial records related to the Contract and performance of the Work in accordance with generally accepted accounting practices, and shall keep and make such records available for inspection and audit by representatives of the City upon reasonable written notice. 32. USE TAX REQUIREMENTS During the performance of this Agreement, CONTRACTOR, for itself, its assignees and Form approved by City Attorney 2_6_2024 17
successors in interest, agrees as follows:A. Use Tax Direct Payment Permit: For all leases and purchases of materials,equipment, supplies, or other tangible personal property used to perform theAgreement and shipped from outside California, the Contractor and anysubcontractors leasing or purchasing such materials, equipment, supplies or othertangible personal property shall obtain a Use Tax Direct Payment Permit from theCalifornia State Board of Equalization (“SBE”) in accordance with the applicableSBE criteria and requirements.B. Sellers Permit: For any construction contract and any construction subcontract inthe amount of $5,000,000 or more, Contractor and the subcontractor(s) shallobtain sellers permits from the SBE and shall register the jobsite as the place ofbusiness for the purpose of allocating local sales and use tax to the City.Contractor and its subcontractors shall remit the self-accrued use tax to the SBE,and shall provide a copy of each remittance to the City.C. The above provisions shall apply in all instances unless prohibited by the fundingsource for the Agreement.33. NON-DISCRIMINATION IN EMPLOYEE BENEFITSThis Agreement may be subject to the requirements of Sacramento City Code Chapter3.54, Non-Discrimination in Employee Benefits by City Contractors. The ContractDocuments include a summary of the requirements of Sacramento City Code Chapter3.54, entitled “Requirements of the Non-Discrimination in Employee Benefits Code.” Bysigning this Agreement, Contractor acknowledges and represents that Contractor hasread and understands these requirements and agrees to fully comply with all applicablerequirements of Sacramento City Code Chapter 3.54. If requested by City, Contractoragrees to promptly provide such documents and information as may be required by Cityto verify Contractor’s compliance. Any violation by Contractor of Sacramento City CodeChapter 3.54 constitutes a material breach of this Agreement, for which the City mayterminate the Agreement and pursue all available legal and equitable remedies.34. CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENTAPPLICATION PROCESSThis Agreement may be subject to the requirements of Sacramento City Code Chapter3.62, Procedures for Considering Criminal Conviction Information in the EmploymentApplication Process. The Contract Documents include a summary of the requirements ofSacramento City Code Chapter 3.62, entitled “Ban-The-Box Requirements.” By signing this Agreement, Contractor acknowledges and represents that Contractor has read andunderstands these requirements and agrees to fully comply with all applicablerequirements of Sacramento City Code Chapter 3.62. If requested by City, Contractoragrees to promptly provide such documents and information as may be required by City Form approved by City Attorney 2_6_2024 18
to verify Contractor’s compliance. Any violation by Contractor of Sacramento City Code Chapter 3.62 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies. Contractor agrees to require its subcontractors to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62, and include these requirements in all subcontracts covered by Sacramento City Code Chapter 3.62.

CONTRACTOR INFORMATION DIR Registration # 1001022242 Federal ID# 55-4594700State ID# 88-2213846 City of Sacramento Business Operation Tax Certificate # 1109862(City will not award contract until Certificate Number is obtained) Type of Business Entity:Individual/Sole ProprietorPartnership Corporation Limited Liability Company Other (please specify: ______________________________________) SCOPE OF WORK Convention has a need for On- to on- an as needed - Contractor to provide on- aspects - Contractor City rContractor commence work notice 5/21/2024Meyer & Cook Insurance Agency, LLCLicense #0D48062P.O. Box 277Walnut GroveCA95690Tim Cook(916)776-1751(916)[email protected] Renovation, LLC2334 Hooke WaySacramentoCA95822Ohio Security Insurance Company24082The Ohio Casualty Insurance Co24074Clear Spring Property and Casualty Company155632024 -2025AXXXXYBKO (25) 64 84 40 805/26/20245/26/20251,000,000500,00015,0001,000,0002,000,0002,000,000BXXXXYBAS (25) 64 84 40 805/26/20245/26/20251,000,000CYCWC008603026/7/20246/7/2025X1,000,0001,000,0001,000,000The City, its officials, employees, and volunteers are added as additional insureds as respects generalliability and automobile polcies. These polcies are primary and non-contributory. Work Comp Waiver ofsubrogation form # WC0403060 attachedCity of Sacramentoc/o EXIGIS LLCP.O. Box 947Murrieta, CA [email protected] Cook/TIMY The ACORD name and logo are registered marks of ACORDCERTIFICATE HOLDER© 1988-2014 ACORD CORPORATION. All rights reserved.ACORD 25 (2014/01)AUTHORIZED REPRESENTATIVECANCELLATION

DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE
LOCJECTPRO-POLICYGEN'L AGGREGATE LIMIT APPLIES PER:OCCURCLAIMS-MADECOMMERCIAL GENERAL LIABILITYPREMISES (Ea occurrence)$DAMAGE TO RENTEDEACH OCCURRENCE $MED EXP (Any one person) $PERSONAL & ADV INJURY $GENERAL AGGREGATE$PRODUCTS - COMP/OP AGG$$RETENTIONDEDCLAIMS-MADEOCCUR$AGGREGATE$EACH OCCURRENCE $UMBRELLA LIABEXCESS LIABDESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) INSRLTRTYPE OF INSURANCEPOLICY NUMBERPOLICY EFF(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)LIMITSPERSTATUTEOTH-ERE.L. EACH ACCIDENTE.L. DISEASE - EA EMPLOYEEE.L. DISEASE - POLICY LIMIT$$$ANY PROPRIETOR/PARTNER/EXECUTIVEIf yes, describe underDESCRIPTION OF OPERATIONS below(Mandatory in NH)OFFICER/MEMBER EXCLUDED?WORKERS COMPENSATIONAND EMPLOYERS' LIABILITYY / NAUTOMOBILE LIABILITYANY AUTOALL OWNED SCHEDULEDHIRED AUTOSNON-OWNEDAUTOS AUTOSAUTOSCOMBINED SINGLE LIMITBODILY INJURY (Per person)BODILY INJURY (Per accident)PROPERTY DAMAGE$$$$THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIODINDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.INSDADDLWVDSUBRN / A$$(Ea accident)(Per accident)OTHER:

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THISCERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZEDREPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject tothe terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to thecertificate holder in lieu of such endorsement(s).COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:INSUREDPHONE(A/C, No, Ext):PRODUCERADDRESS:E-MAILFAX(A/C, No):CONTACTNAME:NAIC #INSURER A :INSURER B :INSURER C :INSURER D :INSURER E :INSURER F :INSURER(S) AFFORDING COVERAGE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED INACCORDANCE WITH THE POLICY PROVISIONS.INS025 (201401)

Form approved by City Attorney 6-23-23 1

AGREEMENT
(On-Call Construction Contract Over $25,000)
THIS AGREEMENT, dated for identification January 23, 2025 , is made and entered into between the CITY OF SACRAMENTO, a municipal corporation ("City"), and John F. Otto Inc. dba Otto Construction, 1717 2 nd St., Sacramento, CA 95811 ("Contractor") in the amount of SEVEN HUNDRED FIFTY THOUSAND DOLLARS AND ZERO CENTS ($750,000.00).

The City and Contractor hereby mutually agree as follows:

1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the "Contract," consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:

Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers' Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
This Agreement
Standard Specifications
Special Provisions
Plans and Technical Specifications
The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Job/Task orders issued by City to Contractors for specific projects Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the "Standard Specifications" shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento approved by the Sacramento City Council on November 10, 2020 (Resolution No. 2020-0354), and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.

Attachment 3 to staff report number 2025-00466
Form approved by City Attorney 6-23-23 2

2.DEFINITIONS Unless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement. 3.AGREEMENT CONTROLS In the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement. 4.SCOPE OF CONTRACT A. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material, and transportation necessary to perform and complete in a good and workmanlike manner to the satisfaction of City, all the Work called for in each job/task order issued by City to Contractor under this Agreement. Contractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.B. A general scope of work is contained in the Agreement and may be further defined in a job/task order. Work shall be assigned to Contractor by City on an individual job or task basis, by City's issuance of a job/task order that specifies the scope of Work for that job or task. All such job/task orders will constitute part of this Contract, and the Contractor shall perform, comply with and be subject to all provisions of the Contract Documents with regard to any work performed pursuant to any such job/task orders. The job/task orders may involve varying levels of effort during the term of the Agreement. The need for services may not be continuous during the term. It is understood and agreed by Contractor that no services at all may be required by City under this Agreement. The City will contact Contractor regarding a specific job/task. Contractor shall not commence work prior to receiving a notice to proceed from the City. C. Prior to the performance of any Work on a job/task order that exceeds $25,000, Contractor shall provide performance and payment bonds on City- approved forms for the amount of the job/task order.D.The term of this Agreement is from March 1, 2025, through February 28, 2030. 5. CONTRACT AMOUNT AND PAYMENTS A. This Agreement is subject to the provisions of Sacramento City Code section3.60.180 which requires, among other things, that Contractor pay not less than Form approved by City Attorney 6-23-23 3
the prevailing rate of wages, as determined by the Director of the California Department of Industrial Relations (DIR) pursuant to California Labor Code section 1773, for: (1) Construction work in an amount exceeding $25,000; or(2) Alteration, demolition, repair, or maintenance work in an amount exceeding $15,000. Pursuant to Sacramento City Code Section 3.60.180, the Contractor is required and agrees to pay the State of California, Department of Industrial Relations prevailing wage rates for covered trades employed. The prevailing wage rates may be found at http://www.dir.ca.gov/dlsr/pwdj. For job/task orders of $30,000 or greater, the Contractor agrees to utilize apprentices, as required by the State of California Labor Code. Contractor and every lower-tier subcontractor shall submit certified payrolls and labor compliance documentation electronically when and as required by City. Contractor is responsible for compliance with Sacramento City Code section 3.60.180 and shall include these requirements in every subcontract or subcontract. This Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. B. Payment for each job or task shall be authorized by the job/task order as provided in Section 4, above, and City shall have no responsibility or liability for any payment not authorized by a City-issued job/task order. All payments shall be made in accordance with the schedule and procedures set forth in the Contract Documents and subject to deductions, withholdings and additions as specified in the Contract Documents.C.Unit prices and hourly rates shall not exceed the amount(s) set forth in Contractor's Proposal Form, provided that for each year the Contract term is extended, to account for inflation, the unit prices and hourly rates set forth in Contractor's Proposal Form shall be increased by an amount equal to three (3) percent or the percentage increase for the previous 12 month period in the Consumer Price Index (CPI), San Francisco area, whichever is less.D.Subject to deductions, withholdings and additions as specified in the Contract Documents, Contractor shall be paid the sum computed at such unit prices, hourly rates, lump sum or time and materials proposals as approved by City in each job/task order, or computed at a different price if such different price is determined by City in accordance with the Standard Specifications, based on the actual hours worked or actual amount of each such unit price, item performed, and/or furnished and incorporated in the Work. 6.PROGRESS PAYMENTS Form approved by City Attorney 6-23-23 4
Subject to the terms and conditions of the Contract and after City's issuance of a job/task order to Contractor, City shall cause payments to be made upon demand of Contractor as follows: A.On or about the first of the month, the Engineer shall present to the Contractor a statement showing the amount of labor and materials incorporated in the Work through the twentieth (20) calendar day of the preceding month. After both Contractor and Engineer approve the statement in writing, and the City's labor compliance officer provides written approval, the City shall issue a certificate for ninety-five (95) percent of the amount it shall find to be due, subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations. B. No inaccuracy or error in said monthly estimates shall operate to release Contractor from damages arising from such Work or from enforcement of each and every provision of the Contract Documents, and City shall have the right subsequently to correct any error made in any estimate for payment. C. Contractor shall not be paid for any defective or improper Work. D. The remaining five (5) percent of the value of the Work performed under the Contract, if unencumbered and subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations, shall be released not later than sixty (60) days after completion and final acceptance of the Work by City. Acceptance by Contractor of the final payment shall constitute a waiver of all claims against the City arising under the Contract Documents, except for disputed claims in stated amounts that the Contractor specifically reserves in writing, but only to the extent that the Contractor has complied with all procedures and requirements applicable to the presentation and processing of such claim(s) under the Contract Documents. Contractor shall be entitled to substitute securities for retention or to direct that payments of retention be made into escrow, as provided in Public Contract Code Section 22300, upon execution of the City's Escrow Agreement for Security Deposits in Lieu of Retention. E.The parties agree that, for purposes of the timely progress payment requirements specified in Public Contract Code Section 20104.50, the date that the City receives a statement jointly approved by the Contractor and the Engineer as provided above shall be deemed to constitute the date that City receives an undisputed and properly submitted payment request from the Contractor. Progress payments not made within 30 days after this date may be subject to payment of interest as provided in Public Contract Code Section 20104.50. F.This Contract is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. 7.RETENTION OF SUMS CHARGED AGAINST CONTRACTOR Form approved by City Attorney 6-23-23 5
When, under the provisions of this Contract or any applicable Laws or Regulations, City is authorized or required to withhold, deduct or charge any sum of money against Contractor, City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate(s), or from any other moneys due or that may become due Contractor from City.If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges, City shall have the right to recover the balance from Contractor or its Sureties.8.COMMENCEMENT AND PROSECUTION OF WORKContractor shall commence the Work for a job or task as directed in the City-issued job/task order and shall diligently prosecute the Work to final completion. The phrase "commence the Work" means to engage in a continuous program on-site including, but not limited to, site clearance, grading, dredging, land filling and the fabrications, erection, or installation of the Work. The continuous prosecution of Work by Contractor shall be subject only to Excusable Delays as defined in this Agreement.9.TIME OF COMPLETION If so specified in a City-issued job/task order, the Work required by the job/task order shall be brought to completion in the manner provided for in the Contract Documents on or before the date specified in the job/task order (hereinafter called the "Completion Date") unless extensions of time are granted in accordance with the Contract Documents. Failure to complete such Work by the Completion Date and in the manner provided for in the Contract Documents shall subject Contractor to liquidated damages as provided in this Agreement. Time is and shall be of the essence in the performance of the Contract and the Work.10.PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORK The payment of any progress payment, or the acceptance thereof by Contractor, shall not constitute acceptance of the Work or any portion thereof and shall in no way reduce the liability of Contractor to replace unsatisfactory work or material, whether or not the unsatisfactory character of such work or material was apparent or detected at the time such payment was made. 11. ACCEPTANCE NOT RELEASE Contractor shall correct immediately any defective or imperfect work or materials that may be discovered before final acceptance of the entire Work, whether or not such defect or imperfection was previously noticed or identified by the City. The inspection of the Work, or any part thereof, shall not relieve Contractor of any of its obligations to perform satisfactory work as herein specified.

Form approved by City Attorney 6-23-23 6
Failure or neglect on the part of City or any of its officers, employees or authorized agents to discover, identify, condemn or reject defective or imperfect work or materials shall not be construed to imply an acceptance of such work or materials, if such defect or imperfection becomes evident at any time prior to final acceptance of the entire Work, nor shall such failure or neglect be construed as barring City from enforcing Contractor's warranty(ies) or otherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subject only to any statutes of limitation that may apply to any such claim.12.CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART The City shall have the right at any time to enter upon the Work and perform work not covered by this Contract, or to occupy and use a portion of the Work, prior to the date of the final acceptance of the Work as a whole, without in any way relieving Contractor of any obligations under this Contract. 13.NO WAIVER OF REMEDIES Neither the inspection by City, its officers, employees or agents, nor any certificate or other approval for the payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by City, nor any extensions of time, nor any position taken by City, its officers, employees or its agents shall operate as a waiver of any provision of the Contract Documents nor of any power herein reserved to City or any right to damages herein provided, nor shall any waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in the Contract Documents shall be taken and construed as cumulative; in addition to each and every other remedy herein provided, the City shall have any and all equitable and legal remedies that it would in any case have. 14.WARRANTY Except as otherwise expressly provided in the Contract Documents, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect by City, Contractor warrants and guarantees all Work executed and all supplies, materials and devices of whatsoever nature incorporated in or attached to the Work, or otherwise provided as a part of the Work pursuant to the Contract, to be absolutely free of all defects of workmanship and materials for a period of one year after final acceptance of the entire Work by the City. Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City.In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in Form approved by City Attorney 6-23-23 7
workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City.In addition to the above, the Contractor shall make a written assignment of all manufacturer's and other product warranties to the City, prior to completion and final acceptance of the Work by City. The Contractor's Performance Bond shall secure the performance of the Contractor's obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.15. LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIME A. The actual fact of the occurrence of damages and the actual amount of the damages that City would suffer if the entire Work, and/or any specified portion thereof, were not completed within the time(s) specified herein are dependent upon many circumstances and conditions that could prevail in various combinations, and for this reason, it is impracticable and extremely difficult to fix the actual damages. Damages that City would suffer in the event of such delay include: loss of the use of the project; expenses of prolonged assignment to the project of an architectural and/or engineering staff; prolonged costs of administration, inspection, and supervision; increased operational expenses and/or impaired operation of other facilities dependent upon completion of the project; and the loss and inconvenience suffered by the public within the City of Sacramento by reason of the delay in the completion of the project or portion thereof. Accordingly, the parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the amount(s) set forth herein as liquidated damages reflect the parties' best efforts at the time of entering into the Contract to estimate the damages that may be incurred by City and the public due to the Contractor's delay in completion of the Work and/or any specified portion thereof, and shall be presumed to be the amount of damages sustained by the failure of Contractor to complete the entire Work and/or any specified portion thereof within the time(s) specified herein.B.Contractor shall pay liquidated damages to City for failure to complete the entire Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $1,000.00 for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which the entire Work is completed. Such amount is the actual cash value agreed upon by the City and Contractor as the loss to City and the public resulting from Contractor's default. The parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the foregoing provisions provide for the Form approved by City Attorney 6-23-23 8
imposition of liquidated damages from the Completion Date (as extended in accordance with the Contract Documents, if applicable) until the date of completion of the entire Work as determined by the Engineer in accordance with Section 8-4 of the Standard Specifications, whether or not the Work or any portion thereof is claimed or determined to be substantially complete prior to such date of completion. C.In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments that otherwise would be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise under any provision of the Contract Documents or any applicable Law or Regulation. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as specified above shall in any manner be construed to constitute a release of any such liabilities nor a waiver of the City's right to withhold payment for such liabilities. 16. INDEMNITY AND HOLD HARMLESS A. Contractor shall defend, hold harmless and indemnify the City, its officers, employees, and agents, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the Work, including, but not limited to, any fees and/or costs reasonably incurred by City's staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform the Work by the Contractor, any subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder, or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense to the extent arising from (i) the sole negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, or (ii) the active negligence of City. B.The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City's Form approved by City Attorney 6-23-23 9
rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract.17.CONTRACTOR SHALL ASSUME RISKS Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City, shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work. 18.GENERAL LIABILITY OF CONTRACTOR Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation. 19. INSURANCE During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19. Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor's insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract. A. Minimum Scope & Limits of Insurance Coverage(1) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Contractor and its subcontractors, products and completed operations of Contractor and its subcontractors, and premises owned, leased, or used by Contractor and its subcontractors, with limits of not less than two million dollars ($2,000,000) per occurrence. The policy shall Form approved by City Attorney 6-23-23
provide contractual liability and products and completed operations coverage for the term of the policy. (2)Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage, and personal injury, with limits of not less than one million dollars ($1,000,000) per accident. The policy shall provide coverage for owned, non- owned, and/or hired autos as appropriate to the operations of the Contractor. No automobile liability insurance shall be required if Contractor completes the following certification: "I certify that a motor vehicle will not be used in the performance of any work orservices under this agreement." (Contractor initials) (3)Excess Insurance: The minimum limits of insurance required above may be satisfied by a combination of primary and umbrella or excess insurance coverage; provided that any umbrella or excess insurance shall contain, or be endorsed to contain, a provision that it shall apply on a primary basis for the benefit of the CITY, and any insurance or self-insurance maintained by CITY, its officials, employees, or volunteers shall be in excess of such umbrella or excess coverage and shall not contribute with it. (4) Workers' Compensation Insurance with statutory limits, and Employers' Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers' Compensation policy shall include a waiver of subrogation in favor of the City.No Workers' Compensation insurance shall be required if Contractor completes the following certification: "I certify that my business has no employees, and that I do not employ anyone. I am exempt from the legal requirements to provide Workers' Compensationinsurance." (Contractor initials)B.Additional Insured Coverage (1) Commercial General Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and its subcontractors; products and completed operations of Contractor and its subcontractors; and premises owned, leased, or used by Contractor and its subcontractors.(2) Automobile Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability.

Form approved by City Attorney 6-23-23 11
C.Other Insurance ProvisionsThe policies are to contain, or be endorsed to contain, the following provisions: (1) Contractor's insurance coverage, including excess insurance, shall be primary insurance as respects City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by City, its officials, employees, or volunteers shall be in excess of Contractor's insurance and shall not contribute with it. (2)Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees, or volunteers. (3)Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.(4) City will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms.D. Acceptability of InsuranceInsurance shall be placed with insurers with a Bests' rating of not less than A:VI. Self-insured retentions, policy terms or other variations that do not comply with the requirements of this Section 3 must be declared to and approved by the City in writing prior to execution of this Contract.E. Verification of Coverage(1) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. Copies of policies shall be delivered to the City on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier.(2) For all insurance policy renewals during the term of this Contract, Contractor shall send insurance certificates reflecting the policy renewals directly to:City of Sacramento c/o EXIGIS LLC P.O. Box 947 Murrieta, CA 92564Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to: [email protected] Form approved by City Attorney 6-23-23 12
(3)The City may withdraw its offer of contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided prior to execution of this Contract. The City may withhold payments to Contractor or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein.F. Subcontractors Contractors shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above. 20.FAILURE TO MAINTAIN BONDS OR INSURANCEIf, at any time during the performance of this Contract, Contractor fails to maintain any item of the bonds and/or insurance required under the Contract in full force and effect, Contractor shall immediately suspend all work under the Contract and notify City in writing of such failure. After such notice is provided, or if City discovers such failure and notifies Contractor, the City thereafter may withhold all Contract payments due or that become due until notice is received by City that such bonds and/or insurance have been restored in full force and effect and that the premiums therefor have been paid for a period satisfactory to the Division of Risk Management. Contractor shall not resume work until notified by City to do so, and the City shall have no responsibility or liability for any costs incurred by Contractor as a result of such suspension of Work. In addition to the foregoing, any failure to maintain any item of the required bonds and/or insurance at any time during the performance of this Contract will be sufficient cause for termination of the Contract by City. The Contractor shall be solely responsible for, and shall defend, indemnify and hold harmless the City, its officers, employees and agents against and from, any and all damages, claims, losses, actions, costs or other expenses of any kind incurred by any party as a direct or indirect result of any suspension of Work or termination of the Contract under the provisions of this Section. 21.EXCUSABLE DELAYS For the purpose of these Contract Documents, the term "Excusable Delay" shall mean, and is limited to, delay caused directly by: acts of God; acts of a public enemy; fires; inclement weather as determined by the Engineer; riots; insurrections; epidemics; quarantine restrictions; strikes; lockouts; sitdowns; acts of a governmental agency; priorities or privileges established for the manufacture, assemble, or allotment of materials necessary in the Work by order, decree or otherwise of the United States or by any department, bureau, commission, committee, agent, or administrator of any legally constituted public authority; changes in the Work ordered by City insofar as they necessarily require additional time in which to complete the Work; the prevention of Contractor from commencing or prosecuting the Work because of the acts of others, excepting Contractor's subcontractors or suppliers; or the prevention of Contractor from Form approved by City Attorney 6-23-23 13
commencing or prosecuting the Work because of a Citywide failure of public utility service.The term "Excusable Delay" shall specifically not include: (i) any delay that could have been avoided by the exercise of care, prudence, foresight and diligence on the part of Contractor; (ii) any delay in the prosecution of any part of the Work that does not constitute a Controlling Operation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting from time required by City for review of any Contractor submittals and for the making of surveys, measurements and inspection; and, (iv) any delay arising from an interruption in the prosecution of the Work on account of reasonable interference by other Contractors employed by City that does not necessarily prevent the completion of the entire Work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date (not in excess of the period of such delay as determined by City) and shall not under any circumstances increase the amount City is required to pay Contractor except as otherwise provided in these Contract Documents.22. CONTRACTOR TO SERVE NOTICE OF DELAYS Whenever Contractor foresees any delay in the prosecution of the Work, and in any event as soon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrence of any delay that Contractor regards as or may later claim to be an Excusable Delay, the Contractor shall notify the Engineer in writing of such delay and its cause, in order that the Engineer: (i) may take immediate steps to prevent if possible the occurrence or continuance of the delay; or (ii) if this cannot be done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon. After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that anyand all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice. 23. EXTENSION OF TIME If the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, the Contractor shall be allowed an extension of time to complete the Work that is proportional to the period of Excusable Delay determined by the Engineer, subject to the approval by City of a change order granting such time extension. During a duly authorized extension for an Excusable Delay, City shall not charge liquidated damages against the Contractor for such delay.If the City extends the time to complete the Work as provided herein, such extension shall in no way release any warranty or guarantee given by Contractor pursuant to the Form approved by City Attorney 6-23-23 14
provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties of the Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extension of time. The granting of any extension of time as provided herein shall in no way operate as a waiver on the part of City of its rights under this Contract, excepting only extension of the Completion Date for such period of Excusable Delay as may be determined by the Engineer and approved by a duly authorized change order. 24.NO PAYMENT FOR DELAYS No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the Work whether or not such delays qualify for extension of time under this Agreement; except that this provision shall not preclude the recovery of damages for a delay caused by the City that is unreasonable under the circumstances and that is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with such other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.25. CHANGES IN THE WORK Changes in the Work authorized or directed in accordance with the Contract Documents and extensions of time of completion made necessary by reason thereof shall not in any way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof. 26. TERMINATION AFTER COMPLETION DATE In addition to any other rights City may have, if any services or work required under the Contract (including but not limited to punch list items) are not completed as of the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), City may terminate the Contract at any time after the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), by providing a written notice to Contractor specifying the date of termination. Such notice also may specify conditions or requirements that Contractor must meet to avoid termination of the Contract on such date. If Contractor fails to fulfill all such conditions and requirements by such termination date, or, if no such conditions or requirements are specified, Contractor shall cease rendering services and performing work on such termination date, and shall not be entitled to receive any compensation for services rendered or work performed after such termination date. In the event of such termination, Contractor shall remain liable to City for liquidated damages incurred for any period of time prior to the termination date. In addition to any other charges, withholdings or deductions authorized under the Contract or any Laws or Regulations, if City terminates the Contract pursuant to this section, City may withhold and deduct from any payment and/or retention funds Form approved by City Attorney 6-23-23 15
otherwise due Contractor any sum necessary to pay the City's cost of completing or correcting, or contracting for the completion or correction of, any services or work under the Contract that are not completed to the satisfaction of the City or that otherwise are deficient or require correction as of such termination date, including but not limited to incomplete punch list items. Such costs shall include all of the City's direct and indirect costs incurred to complete or correct such services or work, including the City's administrative and overhead costs. If the amount of payment(s) and/or retention funds otherwise due the Contractor are insufficient to pay such costs, City shall have the right to recover the balance of such costs from the Contractor and/or its Surety(ies).27. TERMINATION FOR CONVENIENCE Upon written notice to the Contractor, the City may at any time, without cause and without prejudice to any other right or remedy of the City, elect to terminate the Contract for the convenience of City. In such case, the Contractor shall be paid (without duplication of any items, and after deduction and/or withholding of any amounts authorized to be deducted or withheld by the Contract Documents or any Laws or Regulations): A. For Work executed in accordance with the Contract Documents prior to the effective date of termination and determined to be acceptable by the Engineer, including fair and reasonable sums for overhead and profit on such Work; B.For reasonable claims, costs, losses, and damages incurred in settlement of terminated contracts with subcontractors, suppliers, and others; and C. For reasonable expenses directly attributable to termination. Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor's warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section. 28. TERMINATION FOR BREACH OF CONTRACT If Contractor abandons the Work under this Contract, or if the Contract or any portion of the Contract is sublet or assigned without the consent of the City, or if the Engineer determines in the Engineer's sole discretion that the conditions of the Contract in respect to the rate of progress of the Work are not being fulfilled or any part thereof is unnecessarily delayed, or if Contractor violates or breaches, or fails to execute in good faith, any of the terms or conditions of the Contract, or if Contractor refuses or fails to supply enough properly skilled labor or materials or refuses or fails to make prompt payment to subcontractors for material or labor, or if Contractor disregards any Laws or Form approved by City Attorney 6-23-23 16
Regulations or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City may give Contractor and its Sureties written notification to immediately correct the situation or the Contract shall be terminated.In the event that such notice is given, and, in the event such situation is not corrected, or arrangements for correction satisfactory to the City are not made, within ten (10) calendar days from the date of such notice or within such other period of time as may be specified by the City in the notice, the Contract shall upon the expiration of said period cease and terminate. In the event of any such termination, City may take over the Work and prosecute the Work to completion, or otherwise, and the Contractor and its Sureties shall be liable to City for any cost occasioned City thereby, as hereinafter set forth.In the event City completes the Work, or causes the Work to be completed, no payment of any kind shall be made to Contractor until the Work is complete. The cost of completing the Work, including but not limited to, extra costs of project administration and management incurred by City, both direct or indirect, shall be deducted from any sum then due, or that becomes due, to Contractor from City. If sums due to Contractor from City are less than the cost of completing the Work, Contractor and its Sureties shall pay City a sum equal to this difference on demand. In the event City completes the Work, and there is a sum remaining due to Contractor after City deducts the costs of completing the Work, then City shall pay such sum to Contractor. The Contractor and Contractor's Sureties shall be jointly and severally liable for all obligations imposed on Contractor hereunder. No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City's right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuantto Sections 26 and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity. 29. CONTRACTORBANKRUPT If Contractor should commence any bankruptcy proceeding, or if Contractor is adjudged a bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if a receiver is appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice as provided in Section 28 above. 30. SURETIES' OBLIGATIONS UPON TERMINATION If the City terminates the Contract pursuant to Section 28 or Section 29 above: A. The Surety under Contractor's performance bond shall be fully responsible for all of the Contractor's remaining obligations of performance under the Contract as if Form approved by City Attorney 6-23-23 17
the Surety were a party to the Contract, including without limitation Contractor's obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond. B.The Surety under Contractor's payment bond shall be fully responsible for the performance of all of the Contractor's remaining payment obligations for work, services, equipment or materials performed or provided in connection with the Work or any portion thereof, up to the full amount of the payment bond.31.ACCOUNTING RECORDS OF CONTRACTORDuring performance of the Contract and for a period of three (3) years after completing the entire Work, Contractor shall maintain all accounting and financial records related to the Contract and performance of the Work in accordance with generally accepted accounting practices and shall keep and make such records available for inspection and audit by representatives of the City upon reasonable written notice.32. USE TAX REQUIREMENTS During the performance of this Agreement, CONTRACTOR, for itself, its assignees and successors in interest, agrees as follows:A. Use Tax Direct Payment Permit: For all leases and purchases of materials, equipment, supplies, or other tangible personal property used to perform the Agreement and shipped from outside California, the Contractor and any subcontractors leasing or purchasing such materials, equipment, supplies or other tangible personal property shall obtain a Use Tax Direct Payment Permit from the California State Board of Equalization ("SBE") in accordance with the applicable SBE criteria and requirements.B. Sellers Permit: For any construction contract and any construction subcontract in the amount of $5,000,000 or more, Contractor and the subcontractor(s) shall obtain sellers permits from the SBE and shall register the jobsite as the place of business for the purpose of allocating local sales and use tax to the City. Contractor and its subcontractors shall remit the self- accrued use tax to the SBE, and shall provide a copy of each remittance to the City. C. The above provisions shall apply in all instances unless prohibited by the funding source for the Agreement. 33. NON-DISCRIMINATION IN EMPLOYEE BENEFITS This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.54, Non-Discrimination in Employee Benefits by City Contractors. The Contract Form approved by City Attorney 6-23-23 18
Documents include a summary of the requirements of Sacramento City Code Chapter 3.54, entitled "Requirements of the Non-Discrimination in Employee Benefits Code." By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.54. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor's compliance. Any violation by Contractor of Sacramento City Code Chapter 3.54 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies.34.CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENT APPLICATION PROCESS This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.62, Procedures for Considering Criminal Conviction Information in the Employment Application Process. The Contract Documents include a summary of the requirements of Sacramento City Code Chapter 3.62, entitled "Ban-The-Box Requirements." By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor's compliance. Any violation by Contractor of Sacramento City Code Chapter 3.62 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies. Contractor agrees to require its subcontractors to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62 and include these requirements in all subcontracts covered by Sacramento City Code Chapter 3.62.

CONTRACTOR INFORMATION DIR Registration # 1000005395 Federal ID# 94-1431805 State ID# 129-5804-7 City of Sacramento Business Operation Tax Certificate # 151366 (City will not award contract until Certificate Number is obtained) Type of Business Entity: Individual/Sole Proprietor PartnershipCorporation Limited Liability Company Other (please specify: ______________________________________)

SCOPE OF WORK

Form approved by City Attorney 6-23-23 1

AGREEMENT
(On-Call Construction Contract Over $25,000)
THIS AGREEMENT, dated for identification January 23, 2025 , is made and entered into between the CITY OF SACRAMENTO, a municipal corporation ("City"), and TDP Construction Services, Inc., 6420 Freeport Blvd., Sacramento, CA 95822 ("Contractor") in the amount of SEVEN HUNDRED FIFTY THOUSAND DOLLARS AND ZERO CENTS ($750,000.00).

The City and Contractor hereby mutually agree as follows:

1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the "Contract," consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:

Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers' Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
This Agreement
Standard Specifications
Special Provisions
Plans and Technical Specifications
The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Job/Task orders issued by City to Contractors for specific projects Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the "Standard Specifications" shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento approved by the Sacramento City Council on November 10, 2020 (Resolution No. 2020-0354), and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.

Attachment 4 to staff report number 2025-00466
Form approved by City Attorney 6-23-23 2

2.DEFINITIONS Unless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement. 3.AGREEMENT CONTROLS In the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement. 4.SCOPE OF CONTRACT A. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material, and transportation necessary to perform and complete in a good and workmanlike manner to the satisfaction of City, all the Work called for in each job/task order issued by City to Contractor under this Agreement. Contractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.B. A general scope of work is contained in the Agreement and may be further defined in a job/task order. Work shall be assigned to Contractor by City on an individual job or task basis, by City's issuance of a job/task order that specifies the scope of Work for that job or task. All such job/task orders will constitute part of this Contract, and the Contractor shall perform, comply with and be subject to all provisions of the Contract Documents with regard to any work performed pursuant to any such job/task orders. The job/task orders may involve varying levels of effort during the term of the Agreement. The need for services may not be continuous during the term. It is understood and agreed by Contractor that no services at all may be required by City under this Agreement. The City will contact Contractor regarding a specific job/task. Contractor shall not commence work prior to receiving a notice to proceed from the City. C. Prior to the performance of any Work on a job/task order that exceeds $25,000, Contractor shall provide performance and payment bonds on City- approved forms for the amount of the job/task order.D.The term of this Agreement is from March 1, 2025, through February 28, 2030. 5. CONTRACT AMOUNT AND PAYMENTS A. This Agreement is subject to the provisions of Sacramento City Code section3.60.180 which requires, among other things, that Contractor pay not less than Form approved by City Attorney 6-23-23 3
the prevailing rate of wages, as determined by the Director of the California Department of Industrial Relations (DIR) pursuant to California Labor Code section 1773, for: (1) Construction work in an amount exceeding $25,000; or(2) Alteration, demolition, repair, or maintenance work in an amountexceeding $15,000.Pursuant to Sacramento City Code Section 3.60.180, the Contractor is required and agrees to pay the State of California, Department of Industrial Relations prevailing wage rates for covered trades employed. The prevailing wage rates may be found at http://www.dir.ca.gov/dlsr/pwdj. For job/task orders of $30,000 or greater, the Contractor agrees to utilize apprentices, as required by the State of California Labor Code. Contractor and every lower-tier subcontractor shall submit certified payrolls and labor compliance documentation electronically when and as required by City. Contractor is responsible for compliance with Sacramento City Code section 3.60.180 and shall include these requirements in every subcontract or subcontract. This Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. B.Payment for each job or task shall be authorized by the job/task order asprovided in Section 4, above, and City shall have no responsibility or liabilityfor any payment not authorized by a City-issued job/task order. All paymentsshall be made in accordance with the schedule and procedures set forth in theContract Documents and subject to deductions, withholdings and additions asspecified in the Contract Documents.C.Unit prices and hourly rates shall not exceed the amount(s) set forth inContractor's Proposal Form, provided that for each year the Contract term isextended, to account for inflation, the unit prices and hourly rates set forth inContractor's Proposal Form shall be increased by an amount equal to three (3)percent or the percentage increase for the previous 12 month period in theConsumer Price Index (CPI), San Francisco area, whichever is less.D.Subject to deductions, withholdings and additions as specified in the ContractDocuments, Contractor shall be paid the sum computed at such unit prices,hourly rates, lump sum or time and materials proposals as approved by City ineach job/task order, or computed at a different price if such different price isdetermined by City in accordance with the Standard Specifications, based onthe actual hours worked or actual amount of each such unit price, itemperformed, and/or furnished and incorporated in the Work.6.PROGRESS PAYMENTS Form approved by City Attorney 6-23-23 4
Subject to the terms and conditions of the Contract and after City's issuance of a job/task order to Contractor, City shall cause payments to be made upon demand of Contractor as follows:A.On or about the first of the month, the Engineer shall present to the Contractor astatement showing the amount of labor and materials incorporated in the Workthrough the twentieth (20) calendar day of the preceding month. After bothContractor and Engineer approve the statement in writing, and the City's laborcompliance officer provides written approval, the City shall issue a certificate forninety-five (95) percent of the amount it shall find to be due, subject to anydeductions or withholdings authorized or required under the Contract or anyapplicable Laws or Regulations.B.No inaccuracy or error in said monthly estimates shall operate to release Contractorfrom damages arising from such Work or from enforcement of each and everyprovision of the Contract Documents, and City shall have the right subsequently tocorrect any error made in any estimate for payment.C.Contractor shall not be paid for any defective or improper Work.D.The remaining five (5) percent of the value of the Work performed under theContract, if unencumbered and subject to any deductions or withholdingsauthorized or required under the Contract or any applicable Laws or Regulations,shall be released not later than sixty (60) days after completion and final acceptanceof the Work by City. Acceptance by Contractor of the final payment shallconstitute a waiver of all claims against the City arising under the ContractDocuments, except for disputed claims in stated amounts that the Contractorspecifically reserves in writing, but only to the extent that the Contractor hascomplied with all procedures and requirements applicable to the presentation andprocessing of such claim(s) under the Contract Documents. Contractor shall beentitled to substitute securities for retention or to direct that payments of retentionbe made into escrow, as provided in Public Contract Code Section 22300, uponexecution of the City's Escrow Agreement for Security Deposits in Lieu ofRetention.E.The parties agree that, for purposes of the timely progress payment requirementsspecified in Public Contract Code Section 20104.50, the date that the City receivesa statement jointly approved by the Contractor and the Engineer as providedabove shall be deemed to constitute the date that City receives an undisputed andproperly submitted payment request from the Contractor. Progress payments notmade within 30 days after this date may be subject to payment of interest asprovided in Public Contract Code Section 20104.50.F.This Contract is subject to compliance monitoring and enforcement by theCalifornia Department of Industrial Relations, as specified in California LaborCode section 1771.4.7.RETENTION OF SUMS CHARGED AGAINST CONTRACTOR Form approved by City Attorney 6-23-23 5
When, under the provisions of this Contract or any applicable Laws or Regulations, City is authorized or required to withhold, deduct or charge any sum of money against Contractor, City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate(s), or from any other moneys due or that may become due Contractor from City.If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges, City shall have the right to recover the balance from Contractor or its Sureties.8.COMMENCEMENT AND PROSECUTION OF WORKContractor shall commence the Work for a job or task as directed in the City-issuedjob/task order and shall diligently prosecute the Work to final completion. The phrase"commence the Work" means to engage in a continuous program on-site including,but not limited to, site clearance, grading, dredging, land filling and the fabrications,erection, or installation of the Work. The continuous prosecution of Work byContractor shall be subject only to Excusable Delays as defined in this Agreement.9.TIME OF COMPLETIONIf so specified in a City-issued job/task order, the Work required by the job/task ordershall be brought to completion in the manner provided for in the Contract Documentson or before the date specified in the job/task order (hereinafter called the "CompletionDate") unless extensions of time are granted in accordance with the ContractDocuments.Failure to complete such Work by the Completion Date and in the manner providedfor in the Contract Documents shall subject Contractor to liquidated damages asprovided in this Agreement. Time is and shall be of the essence in the performanceof the Contract and the Work.10.PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORKThe payment of any progress payment, or the acceptance thereof by Contractor, shall notconstitute acceptance of the Work or any portion thereof and shall in no way reduce theliability of Contractor to replace unsatisfactory work or material, whether or not theunsatisfactory character of such work or material was apparent or detected at the time suchpayment was made.11.ACCEPTANCE NOT RELEASEContractor shall correct immediately any defective or imperfect work or materials thatmay be discovered before final acceptance of the entire Work, whether or not such defector imperfection was previously noticed or identified by the City. The inspection of theWork, or any part thereof, shall not relieve Contractor of any of its obligations to performsatisfactory work as herein specified.

Form approved by City Attorney 6-23-23 6
Failure or neglect on the part of City or any of its officers, employees or authorized agents to discover, identify, condemn or reject defective or imperfect work or materials shall not be construed to imply an acceptance of such work or materials, if such defect or imperfection becomes evident at any time prior to final acceptance of the entire Work, nor shall such failure or neglect be construed as barring City from enforcing Contractor's warranty(ies) or otherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subject only to any statutes of limitation that may apply to any such claim.12.CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART The City shall have the right at any time to enter upon the Work and perform work not covered by this Contract, or to occupy and use a portion of the Work, prior to the date of the final acceptance of the Work as a whole, without in any way relieving Contractor of any obligations under this Contract. 13.NO WAIVER OF REMEDIES Neither the inspection by City, its officers, employees or agents, nor any certificate or other approval for the payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by City, nor any extensions of time, nor any position taken by City, its officers, employees or its agents shall operate as a waiver of any provision of the Contract Documents nor of any power herein reserved to City or any right to damages herein provided, nor shall any waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in the Contract Documents shall be taken and construed as cumulative; in addition to each and every other remedy herein provided, the City shall have any and all equitable and legal remedies that it would in any case have. 14.WARRANTY Except as otherwise expressly provided in the Contract Documents, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect by City, Contractor warrants and guarantees all Work executed and all supplies, materials and devices of whatsoever nature incorporated in or attached to the Work, or otherwise provided as a part of the Work pursuant to the Contract, to be absolutely free of all defects of workmanship and materials for a period of one year after final acceptance of the entire Work by the City. Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City.In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in Form approved by City Attorney 6-23-23 7
workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City.In addition to the above, the Contractor shall make a written assignment of all manufacturer's and other product warranties to the City, prior to completion and final acceptance of the Work by City.The Contractor's Performance Bond shall secure the performance of the Contractor's obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.15.LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIMEA.The actual fact of the occurrence of damages and the actual amount of the damagesthat City would suffer if the entire Work, and/or any specified portion thereof, werenot completed within the time(s) specified herein are dependent upon manycircumstances and conditions that could prevail in various combinations, and forthis reason, it is impracticable and extremely difficult to fix the actual damages.Damages that City would suffer in the event of such delay include: loss of the useof the project; expenses of prolonged assignment to the project of an architecturaland/or engineering staff; prolonged costs of administration, inspection, andsupervision; increased operational expenses and/or impaired operation of otherfacilities dependent upon completion of the project; and the loss and inconveniencesuffered by the public within the City of Sacramento by reason of the delay in thecompletion of the project or portion thereof. Accordingly, the parties agree, and byexecution of this Agreement, Contractor acknowledges that it understands andagrees, that the amount(s) set forth herein as liquidated damages reflect the parties'best efforts at the time of entering into the Contract to estimate the damages thatmay be incurred by City and the public due to the Contractor's delay in completionof the Work and/or any specified portion thereof, and shall be presumed to be theamount of damages sustained by the failure of Contractor to complete the entireWork and/or any specified portion thereof within the time(s) specified herein.B.Contractor shall pay liquidated damages to City for failure to complete the entireWork by the Completion Date (as extended in accordance with the ContractDocuments, if applicable) in the amount of $1,000.00 for each calendar day afterthe Completion Date (as extended in accordance with the Contract Documents, ifapplicable), continuing to the time at which the entire Work is completed. Suchamount is the actual cash value agreed upon by the City and Contractor as the lossto City and the public resulting from Contractor's default.The parties agree, and by execution of this Agreement, Contractor acknowledgesthat it understands and agrees, that the foregoing provisions provide for the Form approved by City Attorney 6-23-23 8
imposition of liquidated damages from the Completion Date (as extended in accordance with the Contract Documents, if applicable) until the date of completion of the entire Work as determined by the Engineer in accordance with Section 8-4 of the Standard Specifications, whether or not the Work or any portion thereof is claimed or determined to be substantially complete prior to such date of completion. C.In the event Contractor shall become liable for liquidated damages, City, inaddition to all other remedies provided by law, shall have the right to withhold anyand all payments that otherwise would be or become due Contractor until theliability of Contractor under this section is finally determined. City shall have theright to use and apply such payments, in whole or in part, to reimburse City for allliquidated damages due or to become due to City. Any remaining balance of suchpayments shall be paid to Contractor only after discharge in full of all liabilityincurred by Contractor under this section or otherwise under any provision of theContract Documents or any applicable Law or Regulation. If the sum so retainedby City is not sufficient to discharge all such liabilities of Contractor, Contractorshall continue to remain liable to City until all such liabilities are satisfied in full.No failure by City to withhold any payment as specified above shall in any mannerbe construed to constitute a release of any such liabilities nor a waiver of the City'sright to withhold payment for such liabilities.16.INDEMNITY AND HOLD HARMLESSA.Contractor shall defend, hold harmless and indemnify the City, its officers,employees, and agents, and each and every one of them, from and against anyand all actions, damages, costs, liabilities, claims, demands, losses, judgments,penalties, costs and expenses of every type and description, whether arising onor off the site of the Work, including, but not limited to, any fees and/or costsreasonably incurred by City's staff attorneys or outside attorneys and any feesand expenses incurred in enforcing this provision (hereafter collectivelyreferred to as "Liabilities"), including but not limited to Liabilities arising frompersonal injury or death, damage to personal, real or intellectual property or theenvironment, contractual or other economic damages, or regulatory penalties,arising out of or in any way connected with performance of or failure to performthe Work by the Contractor, any subcontractor or agent, anyone directly orindirectly employed by any of them or anyone for whose acts any of them maybe liable, whether or not (i) such Liabilities are caused in part by a partyindemnified hereunder, or (ii) such Liabilities are litigated, settled or reducedto judgment; provided that the foregoing indemnity does not apply to liabilityfor damages for death or bodily injury to persons, injury to property, or otherloss, damage or expense to the extent arising from (i) the sole negligence orwillful misconduct of, or defects in design furnished by, City, its agents,servants, or independent contractors who are directly responsible to City, or (ii)the active negligence of City.B.The existence or acceptance by City of any of the insurance policies orcoverages described in this Agreement shall not affect or limit any of City's Form approved by City Attorney 6-23-23 9
rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract.17.CONTRACTOR SHALL ASSUME RISKS Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City, shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work. 18.GENERAL LIABILITY OF CONTRACTOR Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation. 19. INSURANCE During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19. Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor's insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract. A. Minimum Scope & Limits of Insurance Coverage(1) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Contractor and its subcontractors, products and completed operations of Contractor and its subcontractors, and premises owned, leased, or used by Contractor and its subcontractors, with limits of not less than two million dollars ($2,000,000) per occurrence. The policy shall Form approved by City Attorney 6-23-23
provide contractual liability and products and completed operations coverage for the term of the policy. (2)Automobile Liability Insurance providing coverage at least as broad as ISOForm CA 00 01 for bodily injury, including death, of one or more persons, propertydamage, and personal injury, with limits of not less than one million dollars($1,000,000) per accident. The policy shall provide coverage for owned, non- owned, and/or hired autos as appropriate to the operations of the Contractor.No automobile liability insurance shall be required if Contractor completes the following certification:"I certify that a motor vehicle will not be used in the performance of any work orservices under this agreement." (Contractor initials) (3)Excess Insurance: The minimum limits of insurance required above may besatisfied by a combination of primary and umbrella or excess insurance coverage;provided that any umbrella or excess insurance shall contain, or be endorsed tocontain, a provision that it shall apply on a primary basis for the benefit of theCITY, and any insurance or self-insurance maintained by CITY, its officials,employees, or volunteers shall be in excess of such umbrella or excess coverageand shall not contribute with it.(4)Workers' Compensation Insurance with statutory limits, and Employers'Liability Insurance with limits of not less than one million dollars ($1,000,000).The Workers' Compensation policy shall include a waiver of subrogation in favorof the City.No Workers' Compensation insurance shall be required if Contractor completes the following certification: "I certify that my business has no employees, and that I do not employ anyone. I am exempt from the legal requirements to provide Workers' Compensationinsurance." (Contractor initials)B.Additional Insured Coverage(1)Commercial General Liability Insurance: The City, its officials, employees,and volunteers shall be covered by policy terms or endorsement as additionalinsureds as respects general liability arising out of: activities performed by or onbehalf of Contractor and its subcontractors; products and completed operations ofContractor and its subcontractors; and premises owned, leased, or used byContractor and its subcontractors.(2)Automobile Liability Insurance: The City, its officials, employees, andvolunteers shall be covered by policy terms or endorsement as additional insuredsas respects auto liability.

Form approved by City Attorney 6-23-23 11
C.Other Insurance ProvisionsThe policies are to contain, or be endorsed to contain, the followingprovisions:(1)Contractor's insurance coverage, including excess insurance, shall beprimary insurance as respects City, its officials, employees, and volunteers. Anyinsurance or self-insurance maintained by City, its officials, employees, orvolunteers shall be in excess of Contractor's insurance and shall not contribute withit.(2)Any failure to comply with reporting provisions of the policies shall notaffect coverage provided to City, its officials, employees, or volunteers.(3)Coverage shall state that Contractor's insurance shall apply separately toeach insured against whom claim is made or suit is brought, except with respect tothe limits of the insurer's liability.(4)City will be provided with thirty (30) days written notice of cancellation ormaterial change in the policy language or terms.D. Acceptability of InsuranceInsurance shall be placed with insurers with a Bests' rating of not less than A:VI. Self-insured retentions, policy terms or other variations that do not comply with the requirements of this Section 3 must be declared to and approved by the City in writing prior to execution of this Contract.E. Verification of Coverage(1)Contractor shall furnish City with certificates and required endorsementsevidencing the insurance required. Copies of policies shall be delivered to the Cityon demand. Certificates of insurance shall be signed by an authorizedrepresentative of the insurance carrier.(2)For all insurance policy renewals during the term of this Contract,Contractor shall send insurance certificates reflecting the policy renewals directlyto:City of Sacramento c/o EXIGIS LLC P.O. Box 947 Murrieta, CA 92564Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to: [email protected] Form approved by City Attorney 6-23-23 12
(3)The City may withdraw its offer of contract or cancel this Contract if thecertificates of insurance and endorsements required have not been provided priorto execution of this Contract. The City may withhold payments to Contractor orcancel the Contract if the insurance is canceled or Contractor otherwise ceases tobe insured as required herein.F.SubcontractorsContractors shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above. 20.FAILURE TO MAINTAIN BONDS OR INSURANCEIf, at any time during the performance of this Contract, Contractor fails to maintain anyitem of the bonds and/or insurance required under the Contract in full force and effect,Contractor shall immediately suspend all work under the Contract and notify City inwriting of such failure. After such notice is provided, or if City discovers such failure andnotifies Contractor, the City thereafter may withhold all Contract payments due or thatbecome due until notice is received by City that such bonds and/or insurance have beenrestored in full force and effect and that the premiums therefor have been paid for a periodsatisfactory to the Division of Risk Management. Contractor shall not resume work untilnotified by City to do so, and the City shall have no responsibility or liability for any costsincurred by Contractor as a result of such suspension of Work.In addition to the foregoing, any failure to maintain any item of the required bonds and/orinsurance at any time during the performance of this Contract will be sufficient cause fortermination of the Contract by City.The Contractor shall be solely responsible for, and shall defend, indemnify and holdharmless the City, its officers, employees and agents against and from, any and alldamages, claims, losses, actions, costs or other expenses of any kind incurred by any partyas a direct or indirect result of any suspension of Work or termination of the Contractunder the provisions of this Section.21.EXCUSABLE DELAYSFor the purpose of these Contract Documents, the term "Excusable Delay" shall mean,and is limited to, delay caused directly by: acts of God; acts of a public enemy; fires;inclement weather as determined by the Engineer; riots; insurrections; epidemics;quarantine restrictions; strikes; lockouts; sitdowns; acts of a governmental agency;priorities or privileges established for the manufacture, assemble, or allotment of materialsnecessary in the Work by order, decree or otherwise of the United States or by anydepartment, bureau, commission, committee, agent, or administrator of any legallyconstituted public authority; changes in the Work ordered by City insofar as theynecessarily require additional time in which to complete the Work; the prevention ofContractor from commencing or prosecuting the Work because of the acts of others,excepting Contractor's subcontractors or suppliers; or the prevention of Contractor from Form approved by City Attorney 6-23-23 13
commencing or prosecuting the Work because of a Citywide failure of public utility service.The term "Excusable Delay" shall specifically not include: (i) any delay that could have been avoided by the exercise of care, prudence, foresight and diligence on the part of Contractor; (ii) any delay in the prosecution of any part of the Work that does not constitute a Controlling Operation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting from time required by City for review of any Contractor submittals and for the making of surveys, measurements and inspection; and, (iv) any delay arising from an interruption in the prosecution of the Work on account of reasonable interference by other Contractors employed by City that does not necessarily prevent the completion of the entire Work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date (not in excess of the period of such delay as determined by City) and shall not under any circumstances increase the amount City is required to pay Contractor except as otherwise provided in these Contract Documents.22. CONTRACTOR TO SERVE NOTICE OF DELAYS Whenever Contractor foresees any delay in the prosecution of the Work, and in any event as soon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrence of any delay that Contractor regards as or may later claim to be an Excusable Delay, the Contractor shall notify the Engineer in writing of such delay and its cause, in order that the Engineer: (i) may take immediate steps to prevent if possible the occurrence or continuance of the delay; or (ii) if this cannot be done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon. After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that anyand all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice. 23. EXTENSION OF TIME If the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, the Contractor shall be allowed an extension of time to complete the Work that is proportional to the period of Excusable Delay determined by the Engineer, subject to the approval by City of a change order granting such time extension. During a duly authorized extension for an Excusable Delay, City shall not charge liquidated damages against the Contractor for such delay.If the City extends the time to complete the Work as provided herein, such extension shall in no way release any warranty or guarantee given by Contractor pursuant to the Form approved by City Attorney 6-23-23 14
provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties of the Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extension of time. The granting of any extension of time as provided herein shall in no way operate as a waiver on the part of City of its rights under this Contract, excepting only extension of the Completion Date for such period of Excusable Delay as may be determined by the Engineer and approved by a duly authorized change order. 24.NO PAYMENT FOR DELAYS No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the Work whether or not such delays qualify for extension of time under this Agreement; except that this provision shall not preclude the recovery of damages for a delay caused by the City that is unreasonable under the circumstances and that is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with such other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.25. CHANGES IN THE WORK Changes in the Work authorized or directed in accordance with the Contract Documents and extensions of time of completion made necessary by reason thereof shall not in any way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof. 26. TERMINATION AFTER COMPLETION DATE In addition to any other rights City may have, if any services or work required under the Contract (including but not limited to punch list items) are not completed as of the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), City may terminate the Contract at any time after the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), by providing a written notice to Contractor specifying the date of termination. Such notice also may specify conditions or requirements that Contractor must meet to avoid termination of the Contract on such date. If Contractor fails to fulfill all such conditions and requirements by such termination date, or, if no such conditions or requirements are specified, Contractor shall cease rendering services and performing work on such termination date, and shall not be entitled to receive any compensation for services rendered or work performed after such termination date. In the event of such termination, Contractor shall remain liable to City for liquidated damages incurred for any period of time prior to the termination date. In addition to any other charges, withholdings or deductions authorized under the Contract or any Laws or Regulations, if City terminates the Contract pursuant to this section, City may withhold and deduct from any payment and/or retention funds Form approved by City Attorney 6-23-23 15
otherwise due Contractor any sum necessary to pay the City's cost of completing or correcting, or contracting for the completion or correction of, any services or work under the Contract that are not completed to the satisfaction of the City or that otherwise are deficient or require correction as of such termination date, including but not limited to incomplete punch list items. Such costs shall include all of the City's direct and indirect costs incurred to complete or correct such services or work, including the City's administrative and overhead costs. If the amount of payment(s) and/or retention funds otherwise due the Contractor are insufficient to pay such costs, City shall have the right to recover the balance of such costs from the Contractor and/or its Surety(ies).27.TERMINATION FOR CONVENIENCEUpon written notice to the Contractor, the City may at any time, without cause and withoutprejudice to any other right or remedy of the City, elect to terminate the Contract for theconvenience of City. In such case, the Contractor shall be paid (without duplication ofany items, and after deduction and/or withholding of any amounts authorized to bededucted or withheld by the Contract Documents or any Laws or Regulations):A.For Work executed in accordance with the Contract Documents prior to theeffective date of termination and determined to be acceptable by the Engineer,including fair and reasonable sums for overhead and profit on such Work;B.For reasonable claims, costs, losses, and damages incurred in settlement ofterminated contracts with subcontractors, suppliers, and others; andC.For reasonable expenses directly attributable to termination.Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor's warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section.28.TERMINATION FOR BREACH OF CONTRACTIf Contractor abandons the Work under this Contract, or if the Contract or any portion ofthe Contract is sublet or assigned without the consent of the City, or if the Engineerdetermines in the Engineer's sole discretion that the conditions of the Contract in respectto the rate of progress of the Work are not being fulfilled or any part thereof isunnecessarily delayed, or if Contractor violates or breaches, or fails to execute in goodfaith, any of the terms or conditions of the Contract, or if Contractor refuses or fails tosupply enough properly skilled labor or materials or refuses or fails to make promptpayment to subcontractors for material or labor, or if Contractor disregards any Laws or Form approved by City Attorney 6-23-23 16
Regulations or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City may give Contractor and its Sureties written notification to immediately correct the situation or the Contract shall be terminated.In the event that such notice is given, and, in the event such situation is not corrected, or arrangements for correction satisfactory to the City are not made, within ten (10) calendar days from the date of such notice or within such other period of time as may be specified by the City in the notice, the Contract shall upon the expiration of said period cease and terminate. In the event of any such termination, City may take over the Work and prosecute the Work to completion, or otherwise, and the Contractor and its Sureties shall be liable to City for any cost occasioned City thereby, as hereinafter set forth.In the event City completes the Work, or causes the Work to be completed, no payment of any kind shall be made to Contractor until the Work is complete. The cost of completing the Work, including but not limited to, extra costs of project administration and management incurred by City, both direct or indirect, shall be deducted from any sum then due, or that becomes due, to Contractor from City. If sums due to Contractor from City are less than the cost of completing the Work, Contractor and its Sureties shall pay City a sum equal to this difference on demand. In the event City completes the Work, and there is a sum remaining due to Contractor after City deducts the costs of completing the Work, then City shall pay such sum to Contractor. The Contractor and Contractor's Sureties shall be jointly and severally liable for all obligations imposed on Contractor hereunder.No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City's right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuantto Sections 26 and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity. 29.CONTRACTORBANKRUPTIf Contractor should commence any bankruptcy proceeding, or if Contractor is adjudgeda bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if areceiver is appointed on account of Contractor's insolvency, then the City may, withoutprejudice to any other right or remedy, terminate the Contract and complete the work bygiving notice as provided in Section 28 above.30.SURETIES' OBLIGATIONS UPON TERMINATIONIf the City terminates the Contract pursuant to Section 28 or Section 29 above:A.The Surety under Contractor's performance bond shall be fully responsible for allof the Contractor's remaining obligations of performance under the Contract as if Form approved by City Attorney 6-23-23 17
the Surety were a party to the Contract, including without limitation Contractor's obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond. B.The Surety under Contractor's payment bond shall be fully responsible for the performance of all of the Contractor's remaining payment obligations for work, services, equipment or materials performed or provided in connection with the Work or any portion thereof, up to the full amount of the payment bond.31.ACCOUNTING RECORDS OF CONTRACTORDuring performance of the Contract and for a period of three (3) years after completing the entire Work, Contractor shall maintain all accounting and financial records related to the Contract and performance of the Work in accordance with generally accepted accounting practices and shall keep and make such records available for inspection and audit by representatives of the City upon reasonable written notice.32. USE TAX REQUIREMENTS During the performance of this Agreement, CONTRACTOR, for itself, its assignees and successors in interest, agrees as follows:A. Use Tax Direct Payment Permit: For all leases and purchases of materials, equipment, supplies, or other tangible personal property used to perform the Agreement and shipped from outside California, the Contractor and any subcontractors leasing or purchasing such materials, equipment, supplies or other tangible personal property shall obtain a Use Tax Direct Payment Permit from the California State Board of Equalization ("SBE") in accordance with the applicable SBE criteria and requirements.B. Sellers Permit: For any construction contract and any construction subcontract in the amount of $5,000,000 or more, Contractor and the subcontractor(s) shall obtain sellers permits from the SBE and shall register the jobsite as the place of business for the purpose of allocating local sales and use tax to the City. Contractor and its subcontractors shall remit the self- accrued use tax to the SBE, and shall provide a copy of each remittance to the City. C. The above provisions shall apply in all instances unless prohibited by the funding source for the Agreement. 33. NON-DISCRIMINATION IN EMPLOYEE BENEFITS This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.54, Non-Discrimination in Employee Benefits by City Contractors. The Contract Form approved by City Attorney 6-23-23 18
Documents include a summary of the requirements of Sacramento City Code Chapter 3.54, entitled "Requirements of the Non-Discrimination in Employee Benefits Code." By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.54. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor's compliance. Any violation by Contractor of Sacramento City Code Chapter 3.54 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies.34.CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENTAPPLICATION PROCESSThis Agreement may be subject to the requirements of Sacramento City Code Chapter3.62, Procedures for Considering Criminal Conviction Information in the EmploymentApplication Process. The Contract Documents include a summary of the requirementsof Sacramento City Code Chapter 3.62, entitled "Ban-The-Box Requirements." Bysigning this Agreement, Contractor acknowledges and represents that Contractor hasread and understands these requirements and agrees to fully comply with all applicablerequirements of Sacramento City Code Chapter 3.62. If requested by City, Contractoragrees to promptly provide such documents and information as may be required byCity to verify Contractor's compliance. Any violation by Contractor of SacramentoCity Code Chapter 3.62 constitutes a material breach of this Agreement, for which theCity may terminate the Agreement and pursue all available legal and equitableremedies. Contractor agrees to require its subcontractors to fully comply with allapplicable requirements of Sacramento City Code Chapter 3.62 and include theserequirements in all subcontracts covered by Sacramento City Code Chapter 3.62.

CONTRACTOR INFORMATION DIR Registration # 1000006867 Federal ID# 20-1867094 State ID# 405-17005 City of Sacramento Business Operation Tax Certificate # 143913 (City will not award contract until Certificate Number is obtained) Type of Business Entity: Individual/Sole Proprietor PartnershipCorporation Limited Liability Company Other (please specify: ______________________________________)

SCOPE OF WORK

Form approved by City Attorney 6-23-23 1

AGREEMENT
(On-Call Construction Contract Over $25,000)
THIS AGREEMENT, dated for identification January 23, 2025 , is made and entered into between the CITY OF SACRAMENTO, a municipal corporation ("City"), and United Mechanical, Inc., 2945 Ramco Street, West Sacramento, CA 95691 ("Contractor") in the amount of SEVEN HUNDRED FIFTY THOUSAND DOLLARS AND ZERO CENTS ($750,000.00).

The City and Contractor hereby mutually agree as follows:

1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the "Contract," consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:

Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers' Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
This Agreement
Standard Specifications
Special Provisions
Plans and Technical Specifications
The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Job/Task orders issued by City to Contractors for specific projects Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the "Standard Specifications" shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento approved by the Sacramento City Council on November 10, 2020 (Resolution No. 2020-0354), and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.

Attachment 5 to staff report number 2025-00466
Form approved by City Attorney 6-23-23 2

2.DEFINITIONS Unless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement. 3.AGREEMENT CONTROLS In the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement. 4.SCOPE OF CONTRACT A. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material, and transportation necessary to perform and complete in a good and workmanlike manner to the satisfaction of City, all the Work called for in each job/task order issued by City to Contractor under this Agreement. Contractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.B. A general scope of work is contained in the Agreement and may be further defined in a job/task order. Work shall be assigned to Contractor by City on an individual job or task basis, by City's issuance of a job/task order that specifies the scope of Work for that job or task. All such job/task orders will constitute part of this Contract, and the Contractor shall perform, comply with and be subject to all provisions of the Contract Documents with regard to any work performed pursuant to any such job/task orders. The job/task orders may involve varying levels of effort during the term of the Agreement. The need for services may not be continuous during the term. It is understood and agreed by Contractor that no services at all may be required by City under this Agreement. The City will contact Contractor regarding a specific job/task. Contractor shall not commence work prior to receiving a notice to proceed from the City. C. Prior to the performance of any Work on a job/task order that exceeds $25,000, Contractor shall provide performance and payment bonds on City- approved forms for the amount of the job/task order.D.The term of this Agreement is from March 1, 2025, through February 28, 2030. 5. CONTRACT AMOUNT AND PAYMENTS A. This Agreement is subject to the provisions of Sacramento City Code section3.60.180 which requires, among other things, that Contractor pay not less than Form approved by City Attorney 6-23-23 3
the prevailing rate of wages, as determined by the Director of the California Department of Industrial Relations (DIR) pursuant to California Labor Code section 1773, for: (1) Construction work in an amount exceeding $25,000; or(2) Alteration, demolition, repair, or maintenance work in an amount exceeding $15,000. Pursuant to Sacramento City Code Section 3.60.180, the Contractor is required and agrees to pay the State of California, Department of Industrial Relations prevailing wage rates for covered trades employed. The prevailing wage rates may be found at http://www.dir.ca.gov/dlsr/pwdj. For job/task orders of $30,000 or greater, the Contractor agrees to utilize apprentices, as required by the State of California Labor Code. Contractor and every lower-tier subcontractor shall submit certified payrolls and labor compliance documentation electronically when and as required by City. Contractor is responsible for compliance with Sacramento City Code section 3.60.180 and shall include these requirements in every subcontract or subcontract. This Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. B. Payment for each job or task shall be authorized by the job/task order as provided in Section 4, above, and City shall have no responsibility or liability for any payment not authorized by a City-issued job/task order. All payments shall be made in accordance with the schedule and procedures set forth in the Contract Documents and subject to deductions, withholdings and additions as specified in the Contract Documents.C.Unit prices and hourly rates shall not exceed the amount(s) set forth in Contractor's Proposal Form, provided that for each year the Contract term is extended, to account for inflation, the unit prices and hourly rates set forth in Contractor's Proposal Form shall be increased by an amount equal to three (3) percent or the percentage increase for the previous 12 month period in the Consumer Price Index (CPI), San Francisco area, whichever is less.D.Subject to deductions, withholdings and additions as specified in the Contract Documents, Contractor shall be paid the sum computed at such unit prices, hourly rates, lump sum or time and materials proposals as approved by City in each job/task order, or computed at a different price if such different price is determined by City in accordance with the Standard Specifications, based on the actual hours worked or actual amount of each such unit price, item performed, and/or furnished and incorporated in the Work. 6.PROGRESS PAYMENTS Form approved by City Attorney 6-23-23 4
Subject to the terms and conditions of the Contract and after City's issuance of a job/task order to Contractor, City shall cause payments to be made upon demand of Contractor as follows: A.On or about the first of the month, the Engineer shall present to the Contractor a statement showing the amount of labor and materials incorporated in the Work through the twentieth (20) calendar day of the preceding month. After both Contractor and Engineer approve the statement in writing, and the City's labor compliance officer provides written approval, the City shall issue a certificate for ninety-five (95) percent of the amount it shall find to be due, subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations. B. No inaccuracy or error in said monthly estimates shall operate to release Contractor from damages arising from such Work or from enforcement of each and every provision of the Contract Documents, and City shall have the right subsequently to correct any error made in any estimate for payment. C. Contractor shall not be paid for any defective or improper Work. D. The remaining five (5) percent of the value of the Work performed under the Contract, if unencumbered and subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations, shall be released not later than sixty (60) days after completion and final acceptance of the Work by City. Acceptance by Contractor of the final payment shall constitute a waiver of all claims against the City arising under the Contract Documents, except for disputed claims in stated amounts that the Contractor specifically reserves in writing, but only to the extent that the Contractor has complied with all procedures and requirements applicable to the presentation and processing of such claim(s) under the Contract Documents. Contractor shall be entitled to substitute securities for retention or to direct that payments of retention be made into escrow, as provided in Public Contract Code Section 22300, upon execution of the City's Escrow Agreement for Security Deposits in Lieu of Retention. E.The parties agree that, for purposes of the timely progress payment requirements specified in Public Contract Code Section 20104.50, the date that the City receives a statement jointly approved by the Contractor and the Engineer as provided above shall be deemed to constitute the date that City receives an undisputed and properly submitted payment request from the Contractor. Progress payments not made within 30 days after this date may be subject to payment of interest as provided in Public Contract Code Section 20104.50. F.This Contract is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. 7.RETENTION OF SUMS CHARGED AGAINST CONTRACTOR Form approved by City Attorney 6-23-23 5
When, under the provisions of this Contract or any applicable Laws or Regulations, Cityis authorized or required to withhold, deduct or charge any sum of money against Contractor, City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate(s), or from any other moneys due or that may become due Contractor from City.If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges, City shall have the right to recover the balance from Contractor or its Sureties.8.COMMENCEMENT AND PROSECUTION OF WORKContractor shall commence the Work for a job or task as directed in the City-issued job/task order and shall diligently prosecute the Work to final completion. The phrase "commence the Work" means to engage in a continuous program on-site including, but not limited to, site clearance, grading, dredging, land filling and the fabrications, erection, or installation of the Work. The continuous prosecution of Work by Contractor shall be subject only to Excusable Delays as defined in this Agreement.9.TIME OF COMPLETION If so specified in a City-issued job/task order, the Work required by the job/task order shall be brought to completion in the manner provided for in the Contract Documents on or before the date specified in the job/task order (hereinafter called the "Completion Date") unless extensions of time are granted in accordance with the Contract Documents. Failure to complete such Work by the Completion Date and in the manner provided for in the Contract Documents shall subject Contractor to liquidated damages as provided in this Agreement. Time is and shall be of the essence in the performance of the Contract and the Work.10.PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORK The payment of any progress payment, or the acceptance thereof by Contractor, shall not constitute acceptance of the Work or any portion thereof and shall in no way reduce the liability of Contractor to replace unsatisfactory work or material, whether or not the unsatisfactory character of such work or material was apparent or detected at the time such payment was made. 11. ACCEPTANCE NOT RELEASE Contractor shall correct immediately any defective or imperfect work or materials that may be discovered before final acceptance of the entire Work, whether or not such defect or imperfection was previously noticed or identified by the City. The inspection of the Work, or any part thereof, shall not relieve Contractor of any of its obligations to perform satisfactory work as herein specified.

Form approved by City Attorney 6-23-23 6
Failure or neglect on the part of City or any of its officers, employees or authorized agents to discover, identify, condemn or reject defective or imperfect work or materials shall not be construed to imply an acceptance of such work or materials, if such defect or imperfection becomes evident at any time prior to final acceptance of the entire Work, nor shall such failure or neglect be construed as barring City from enforcing Contractor's warranty(ies) or otherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subject only to any statutes of limitation that may apply to any such claim.12.CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART The City shall have the right at any time to enter upon the Work and perform work not covered by this Contract, or to occupy and use a portion of the Work, prior to the date of the final acceptance of the Work as a whole, without in any way relieving Contractor of any obligations under this Contract. 13.NO WAIVER OF REMEDIES Neither the inspection by City, its officers, employees or agents, nor any certificate or other approval for the payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by City, nor any extensions of time, nor any position taken by City, its officers, employees or its agents shall operate as a waiver of any provision of the Contract Documents nor of any power herein reserved to City or any right to damages herein provided, nor shall any waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in the Contract Documents shall be taken and construed as cumulative; in addition to each and every other remedy herein provided, the City shall have any and all equitable and legal remedies that it would in any case have. 14.WARRANTY Except as otherwise expressly provided in the Contract Documents, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect by City, Contractor warrants and guarantees all Work executed and all supplies, materials and devices of whatsoever nature incorporated in or attached to the Work, or otherwise provided as a part of the Work pursuant to the Contract, to be absolutely free of all defects of workmanship and materials for a period of one year after final acceptance of the entire Work by the City. Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City.In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in Form approved by City Attorney 6-23-23 7
workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City.In addition to the above, the Contractor shall make a written assignment of all manufacturer's and other product warranties to the City, prior to completion and final acceptance of the Work by City. The Contractor's Performance Bond shall secure the performance of the Contractor's obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.15. LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIME A. The actual fact of the occurrence of damages and the actual amount of the damages that City would suffer if the entire Work, and/or any specified portion thereof, were not completed within the time(s) specified herein are dependent upon many circumstances and conditions that could prevail in various combinations, and for this reason, it is impracticable and extremely difficult to fix the actual damages. Damages that City would suffer in the event of such delay include: loss of the use of the project; expenses of prolonged assignment to the project of an architectural and/or engineering staff; prolonged costs of administration, inspection, and supervision; increased operational expenses and/or impaired operation of other facilities dependent upon completion of the project; and the loss and inconvenience suffered by the public within the City of Sacramento by reason of the delay in the completion of the project or portion thereof. Accordingly, the parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the amount(s) set forth herein as liquidated damages reflect the parties' best efforts at the time of entering into the Contract to estimate the damages that may be incurred by City and the public due to the Contractor's delay in completion of the Work and/or any specified portion thereof, and shall be presumed to be the amount of damages sustained by the failure of Contractor to complete the entire Work and/or any specified portion thereof within the time(s) specified herein.B.Contractor shall pay liquidated damages to City for failure to complete the entire Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $1,000.00 for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which the entire Work is completed. Such amount is the actual cash value agreed upon by the City and Contractor as the loss to City and the public resulting from Contractor's default. The parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the foregoing provisions provide for the Form approved by City Attorney 6-23-23 8
imposition of liquidated damages from the Completion Date (as extended in accordance with the Contract Documents, if applicable) until the date of completion of the entire Work as determined by the Engineer in accordance with Section 8-4 of the Standard Specifications, whether or not the Work or any portion thereof is claimed or determined to be substantially complete prior to such date of completion. C.In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments that otherwise would be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise under any provision of the Contract Documents or any applicable Law or Regulation. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as specified above shall in any manner be construed to constitute a release of any such liabilities nor a waiver of the City's right to withhold payment for such liabilities. 16. INDEMNITY AND HOLD HARMLESS A. Contractor shall defend, hold harmless and indemnify the City, its officers, employees, and agents, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the Work, including, but not limited to, any fees and/or costs reasonably incurred by City's staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform the Work by the Contractor, any subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder, or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense to the extent arising from (i) the sole negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, or (ii) the active negligence of City. B.The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City's Form approved by City Attorney 6-23-23 9
rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract.17.CONTRACTOR SHALL ASSUME RISKS Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City, shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work. 18.GENERAL LIABILITY OF CONTRACTOR Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation. 19. INSURANCE During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19. Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor's insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract. A. Minimum Scope & Limits of Insurance Coverage(1) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Contractor and its subcontractors, products and completed operations of Contractor and its subcontractors, and premises owned, leased, or used by Contractor and its subcontractors, with limits of not less than two million dollars ($2,000,000) per occurrence. The policy shall Form approved by City Attorney 6-23-23
provide contractual liability and products and completed operations coverage for the term of the policy. (2)Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage, and personal injury, with limits of not less than one million dollars ($1,000,000) per accident. The policy shall provide coverage for owned, non- owned, and/or hired autos as appropriate to the operations of the Contractor. No automobile liability insurance shall be required if Contractor completes the following certification: "I certify that a motor vehicle will not be used in the performance of any work orservices under this agreement." (Contractor initials) (3)Excess Insurance: The minimum limits of insurance required above may be satisfied by a combination of primary and umbrella or excess insurance coverage; provided that any umbrella or excess insurance shall contain, or be endorsed to contain, a provision that it shall apply on a primary basis for the benefit of the CITY, and any insurance or self-insurance maintained by CITY, its officials, employees, or volunteers shall be in excess of such umbrella or excess coverage and shall not contribute with it. (4) Workers' Compensation Insurance with statutory limits, and Employers' Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers' Compensation policy shall include a waiver of subrogation in favor of the City.No Workers' Compensation insurance shall be required if Contractor completes the following certification: "I certify that my business has no employees, and that I do not employ anyone. I am exempt from the legal requirements to provide Workers' Compensationinsurance." (Contractor initials)B.Additional Insured Coverage (1) Commercial General Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and its subcontractors; products and completed operations of Contractor and its subcontractors; and premises owned, leased, or used by Contractor and its subcontractors.(2) Automobile Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability.

Form approved by City Attorney 6-23-23 11
C.Other Insurance ProvisionsThe policies are to contain, or be endorsed to contain, the following provisions: (1) Contractor's insurance coverage, including excess insurance, shall be primary insurance as respects City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by City, its officials, employees, or volunteers shall be in excess of Contractor's insurance and shall not contribute with it. (2)Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees, or volunteers. (3)Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.(4) City will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms.D. Acceptability of InsuranceInsurance shall be placed with insurers with a Bests' rating of not less than A:VI. Self-insured retentions, policy terms or other variations that do not comply with the requirements of this Section 3 must be declared to and approved by the City in writing prior to execution of this Contract.E. Verification of Coverage(1) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. Copies of policies shall be delivered to the City on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier.(2) For all insurance policy renewals during the term of this Contract, Contractor shall send insurance certificates reflecting the policy renewals directly to:City of Sacramento c/o EXIGIS LLC P.O. Box 947 Murrieta, CA 92564Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to: [email protected] Form approved by City Attorney 6-23-23 12
(3)The City may withdraw its offer of contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided prior to execution of this Contract. The City may withhold payments to Contractor or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein.F. Subcontractors Contractors shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above. 20.FAILURE TO MAINTAIN BONDS OR INSURANCEIf, at any time during the performance of this Contract, Contractor fails to maintain any item of the bonds and/or insurance required under the Contract in full force and effect, Contractor shall immediately suspend all work under the Contract and notify City in writing of such failure. After such notice is provided, or if City discovers such failure and notifies Contractor, the City thereafter may withhold all Contract payments due or that become due until notice is received by City that such bonds and/or insurance have been restored in full force and effect and that the premiums therefor have been paid for a period satisfactory to the Division of Risk Management. Contractor shall not resume work until notified by City to do so, and the City shall have no responsibility or liability for any costs incurred by Contractor as a result of such suspension of Work. In addition to the foregoing, any failure to maintain any item of the required bonds and/or insurance at any time during the performance of this Contract will be sufficient cause for termination of the Contract by City. The Contractor shall be solely responsible for, and shall defend, indemnify and hold harmless the City, its officers, employees and agents against and from, any and all damages, claims, losses, actions, costs or other expenses of any kind incurred by any party as a direct or indirect result of any suspension of Work or termination of the Contract under the provisions of this Section. 21.EXCUSABLE DELAYS For the purpose of these Contract Documents, the term "Excusable Delay" shall mean, and is limited to, delay caused directly by: acts of God; acts of a public enemy; fires; inclement weather as determined by the Engineer; riots; insurrections; epidemics; quarantine restrictions; strikes; lockouts; sitdowns; acts of a governmental agency; priorities or privileges established for the manufacture, assemble, or allotment of materials necessary in the Work by order, decree or otherwise of the United States or by any department, bureau, commission, committee, agent, or administrator of any legally constituted public authority; changes in the Work ordered by City insofar as they necessarily require additional time in which to complete the Work; the prevention of Contractor from commencing or prosecuting the Work because of the acts of others, excepting Contractor's subcontractors or suppliers; or the prevention of Contractor from Form approved by City Attorney 6-23-23 13
commencing or prosecuting the Work because of a Citywide failure of public utility service.The term "Excusable Delay" shall specifically not include: (i) any delay that could have been avoided by the exercise of care, prudence, foresight and diligence on the part of Contractor; (ii) any delay in the prosecution of any part of the Work that does not constitute a Controlling Operation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting from time required by City for review of any Contractor submittals and for the making of surveys, measurements and inspection; and, (iv) any delay arising from an interruption in the prosecution of the Work on account of reasonable interference by other Contractors employed by City that does not necessarily prevent the completion of the entire Work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date (not in excess of the period of such delay as determined by City) and shall not under any circumstances increase the amount City is required to pay Contractor except as otherwise provided in these Contract Documents.22. CONTRACTOR TO SERVE NOTICE OF DELAYS Whenever Contractor foresees any delay in the prosecution of the Work, and in any event as soon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrence of any delay that Contractor regards as or may later claim to be an Excusable Delay, the Contractor shall notify the Engineer in writing of such delay and its cause, in order that the Engineer: (i) may take immediate steps to prevent if possible the occurrence or continuance of the delay; or (ii) if this cannot be done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon. After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that anyand all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice. 23. EXTENSION OF TIME If the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, the Contractor shall be allowed an extension of time to complete the Work that is proportional to the period of Excusable Delay determined by the Engineer, subject to the approval by City of a change order granting such time extension. During a duly authorized extension for an Excusable Delay, City shall not charge liquidated damages against the Contractor for such delay.If the City extends the time to complete the Work as provided herein, such extension shall in no way release any warranty or guarantee given by Contractor pursuant to the Form approved by City Attorney 6-23-23 14
provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties of the Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extension of time. The granting of any extension of time as provided herein shall in no way operate as a waiver on the part of City of its rights under this Contract, excepting only extension of the Completion Date for such period of Excusable Delay as may be determined by the Engineer and approved by a duly authorized change order. 24.NO PAYMENT FOR DELAYS No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the Work whether or not such delays qualify for extension of time under this Agreement; except that this provision shall not preclude the recovery of damages for a delay caused by the City that is unreasonable under the circumstances and that is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with such other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.25. CHANGES IN THE WORK Changes in the Work authorized or directed in accordance with the Contract Documents and extensions of time of completion made necessary by reason thereof shall not in any way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof. 26. TERMINATION AFTER COMPLETION DATE In addition to any other rights City may have, if any services or work required under the Contract (including but not limited to punch list items) are not completed as of the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), City may terminate the Contract at any time after the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), by providing a written notice to Contractor specifying the date of termination. Such notice also may specify conditions or requirements that Contractor must meet to avoid termination of the Contract on such date. If Contractor fails to fulfill all such conditions and requirements by such termination date, or, if no such conditions or requirements are specified, Contractor shall cease rendering services and performing work on such termination date, and shall not be entitled to receive any compensation for services rendered or work performed after such termination date. In the event of such termination, Contractor shall remain liable to City for liquidated damages incurred for any period of time prior to the termination date. In addition to any other charges, withholdings or deductions authorized under the Contract or any Laws or Regulations, if City terminates the Contract pursuant to this section, City may withhold and deduct from any payment and/or retention funds Form approved by City Attorney 6-23-23 15
otherwise due Contractor any sum necessary to pay the City's cost of completing or correcting, or contracting for the completion or correction of, any services or work under the Contract that are not completed to the satisfaction of the City or that otherwise are deficient or require correction as of such termination date, including but not limited to incomplete punch list items. Such costs shall include all of the City's direct and indirect costs incurred to complete or correct such services or work, including the City's administrative and overhead costs. If the amount of payment(s) and/or retention funds otherwise due the Contractor are insufficient to pay such costs, City shall have the right to recover the balance of such costs from the Contractor and/or its Surety(ies).27. TERMINATION FOR CONVENIENCE Upon written notice to the Contractor, the City may at any time, without cause and without prejudice to any other right or remedy of the City, elect to terminate the Contract for the convenience of City. In such case, the Contractor shall be paid (without duplication of any items, and after deduction and/or withholding of any amounts authorized to be deducted or withheld by the Contract Documents or any Laws or Regulations): A. For Work executed in accordance with the Contract Documents prior to the effective date of termination and determined to be acceptable by the Engineer, including fair and reasonable sums for overhead and profit on such Work; B.For reasonable claims, costs, losses, and damages incurred in settlement of terminated contracts with subcontractors, suppliers, and others; and C. For reasonable expenses directly attributable to termination. Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor's warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section. 28. TERMINATION FOR BREACH OF CONTRACT If Contractor abandons the Work under this Contract, or if the Contract or any portion of the Contract is sublet or assigned without the consent of the City, or if the Engineer determines in the Engineer's sole discretion that the conditions of the Contract in respect to the rate of progress of the Work are not being fulfilled or any part thereof is unnecessarily delayed, or if Contractor violates or breaches, or fails to execute in good faith, any of the terms or conditions of the Contract, or if Contractor refuses or fails to supply enough properly skilled labor or materials or refuses or fails to make prompt payment to subcontractors for material or labor, or if Contractor disregards any Laws or Form approved by City Attorney 6-23-23 16
Regulations or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City may give Contractor and its Sureties written notification to immediately correct the situation or the Contract shall be terminated.In the event that such notice is given, and, in the event such situation is not corrected, or arrangements for correction satisfactory to the City are not made, within ten (10) calendar days from the date of such notice or within such other period of time as may be specified by the City in the notice, the Contract shall upon the expiration of said period cease and terminate. In the event of any such termination, City may take over the Work and prosecute the Work to completion, or otherwise, and the Contractor and its Sureties shall be liable to City for any cost occasioned City thereby, as hereinafter set forth.In the event City completes the Work, or causes the Work to be completed, no payment of any kind shall be made to Contractor until the Work is complete. The cost of completing the Work, including but not limited to, extra costs of project administration and management incurred by City, both direct or indirect, shall be deducted from any sum then due, or that becomes due, to Contractor from City. If sums due to Contractor from City are less than the cost of completing the Work, Contractor and its Sureties shall pay City a sum equal to this difference on demand. In the event City completes the Work, and there is a sum remaining due to Contractor after City deducts the costs of completing the Work, then City shall pay such sum to Contractor. The Contractor and Contractor's Sureties shall be jointly and severally liable for all obligations imposed on Contractor hereunder. No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City's right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuantto Sections 26 and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity. 29. CONTRACTORBANKRUPT If Contractor should commence any bankruptcy proceeding, or if Contractor is adjudged a bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if a receiver is appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice as provided in Section 28 above. 30. SURETIES' OBLIGATIONS UPON TERMINATION If the City terminates the Contract pursuant to Section 28 or Section 29 above: A. The Surety under Contractor's performance bond shall be fully responsible for all of the Contractor's remaining obligations of performance under the Contract as if Form approved by City Attorney 6-23-23 17
the Surety were a party to the Contract, including without limitation Contractor's obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond. B.The Surety under Contractor's payment bond shall be fully responsible for theperformance of all of the Contractor's remaining payment obligations for work,services, equipment or materials performed or provided in connection with theWork or any portion thereof, up to the full amount of the payment bond.31.ACCOUNTING RECORDS OF CONTRACTORDuring performance of the Contract and for a period of three (3) years aftercompleting the entire Work, Contractor shall maintain all accounting and financialrecords related to the Contract and performance of the Work in accordance withgenerally accepted accounting practices and shall keep and make such recordsavailable for inspection and audit by representatives of the City upon reasonablewritten notice.32.USE TAX REQUIREMENTSDuring the performance of this Agreement, CONTRACTOR, for itself, its assignees andsuccessors in interest, agrees as follows:A.Use Tax Direct Payment Permit: For all leases and purchases of materials,equipment, supplies, or other tangible personal property used to perform theAgreement and shipped from outside California, the Contractor and anysubcontractors leasing or purchasing such materials, equipment, supplies orother tangible personal property shall obtain a Use Tax Direct Payment Permitfrom the California State Board of Equalization ("SBE") in accordance with theapplicable SBE criteria and requirements.B.Sellers Permit: For any construction contract and any construction subcontractin the amount of $5,000,000 or more, Contractor and the subcontractor(s) shallobtain sellers permits from the SBE and shall register the jobsite as the placeof business for the purpose of allocating local sales and use tax to the City.Contractor and its subcontractors shall remit the self- accrued use tax to theSBE, and shall provide a copy of each remittance to the City.C.The above provisions shall apply in all instances unless prohibited by thefunding source for the Agreement.33.NON-DISCRIMINATION IN EMPLOYEE BENEFITSThis Agreement may be subject to the requirements of Sacramento City Code Chapter3.54, Non-Discrimination in Employee Benefits by City Contractors. The Contract Form approved by City Attorney 6-23-23 18
Documents include a summary of the requirements of Sacramento City Code Chapter 3.54, entitled "Requirements of the Non-Discrimination in Employee Benefits Code." By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.54. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor's compliance. Any violation by Contractor of Sacramento City Code Chapter 3.54 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies.34.CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENTAPPLICATION PROCESSThis Agreement may be subject to the requirements of Sacramento City Code Chapter3.62, Procedures for Considering Criminal Conviction Information in the EmploymentApplication Process. The Contract Documents include a summary of the requirementsof Sacramento City Code Chapter 3.62, entitled "Ban-The-Box Requirements." Bysigning this Agreement, Contractor acknowledges and represents that Contractor hasread and understands these requirements and agrees to fully comply with all applicablerequirements of Sacramento City Code Chapter 3.62. If requested by City, Contractoragrees to promptly provide such documents and information as may be required byCity to verify Contractor's compliance. Any violation by Contractor of SacramentoCity Code Chapter 3.62 constitutes a material breach of this Agreement, for which theCity may terminate the Agreement and pursue all available legal and equitableremedies. Contractor agrees to require its subcontractors to fully comply with allapplicable requirements of Sacramento City Code Chapter 3.62 and include theserequirements in all subcontracts covered by Sacramento City Code Chapter 3.62.

CONTRACTOR INFORMATION DIR Registration # 1000004098 Federal ID# 54-2095461 State ID# 485-3355-8 City of Sacramento Business Operation Tax Certificate # 1101032 (City will not award contract until Certificate Number is obtained) Type of Business Entity: Individual/Sole Proprietor PartnershipCorporation Limited Liability Company Other (please specify: ______________________________________)

SCOPE OF WORK